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GLOSSARY
Recession
Recession is an economic state where overall production is stagnant or declining. Generally, it's viewed as a fall in the Gross Domestic Product for two quarters in a row.
Reciprocity
Agreements between states that help reduce or eliminates non-resident fees at public universities to help lower costs for out-of-state residents.
Recognized gain or loss
Recognized gain or loss is the profit earned, or deficit incurred, from the sale of an asset. When the asset is sold for more than its purchase price, the seller recognizes a gain. When the asset is sold for less than its purchase price, the seller recognizes a loss. Recognized gains are usually considered taxable income, but these gains can be offset by recognized losses.
Reconditioning reserve
Reconditioning reserve is a deposit paid by one who leases a car; the reserve amount is held by the lessor and used to offset any amounts owed at lease maturity.
Reconveyance
The official transfer of the property title after the mortgage has been paid in full.
Recorder
A public or government official who keeps and maintains real-estate records.
Recording
Recording is the entering of a document into public record. Transactions affecting property titles, such as ownership changes, liens, and leases, are usually recorded (by a County Recorder for example), so that the general public has access to the information.
Recording fee
A fee charged by the government to file records of real estate.
Recourse loan
A recourse loan is a secured debt facility extended to a direct participation program or limited partnership that provides the lender with an ownership claim on the entity's general assets in addition to the specified collateral. More generally, a recourse loan can also be a guaranteed loan, where the lender can go after the guarantor for payment if the borrower defaults.
Recurring debt
Recurring debt is any repeating payment obligation that can't be canceled. Child support payments and loan payments are both recurring debts. An individual's total recurring debt level is considered by the lender during the loan approval process.
Red flag
A red flag, in general, is a sign of a potential problem. In investing, a red flag is a factor that can potentially reduce the earnings power of a publicly traded company. A red flag, in this sense, can be almost anything that would affect the company's operations, from pending legislation to technological advances.
Redemption
Debtors sometimes may keep exempt secured property even though they owe money on it by paying the creditor the market value of the property rather than the amount of the debt.
Redevelopment or Enterprise Zone
A Redevelopment or Enterprise Zone is an area that the government designates as needing incentives to promote business activity. Businesses that open or operate within the designated zone may be eligible for special tax breaks.
Redlining
The illegal practice sometimes used by shady lenders and insurance companies to deny loans and other services to people because of their neighborhood or ethnicity.
Refinance wave
A refinance wave is a trend of mortgage refinancing that is prompted by a large drop in market interest rates. The rate drop must large enough that borrowers can save a noticeable amount of money in total interest and monthly payment amount, even after considering the out-of-pocket closing costs associated with a refinance.