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GLOSSARY
Replevin
Replevin is a legal proceeding taken by one who wishes to recover personal property that's illegally held by someone else. Replevin can, for example, involve a creditor's seizure of personal property (not real estate) that was used as collateral for debt.
Repossession
When a lender takes back the property when the borrower stops making payments.
Requested cash out
The amount of money you request to get back from your mortgage transaction.
Required minimum distribution
Required minimum distribution, or RMD, pertains to traditional, SEP, and SIMPLE IRAs. The IRA accountholder must take a certain amount of money out of the account by April 1 of the year he turns 70-1/2, and then every year thereafter. The exact amount is dependent on the person's age and life expectancy. If the RMD isn't taken, the accountholder will be charged an excise tax by the IRS.
Required minimum distribution - RMD
Required minimum distribution, or RMD, pertains to traditional, SEP and SIMPLE IRAs. The IRA accountholder must take a certain amount of money out of the account by April 1 of the year he turns 70-1/2, and then every year thereafter. The exact amount is dependent on the person's age and life expectancy. If the RMD isn't taken, the accountholder will be charged an excise tax by the IRS.
Resale value
The selling price that would be negotiated by a willing seller and buyer for an existing home or property.
Rescheduled loan
Rescheduled loan is a debt facility that has been restructured due to the borrower's inability to make scheduled payments under the previous terms. Usually a rescheduled loan will have the maturity date extended from what was specified in the original loan agreement.
Rescission
Rescission is the cancellation or annulment of a contract or obligation, often by mutual consent of the parties involved. In mortgage lending, for example, federal law provides the borrower with the right to rescind a mortgage agreement within three days of signing the document.
Reserve
Reserve is any amount set aside to cover unexpected circumstances. In personal finance, a reserve can be the household's emergency fund. In asset-based lending, the reserve is the value of the collateral over and above the debt outstanding.
Reserve fund
Reserve fund is an amount of money set aside to cover unexpected circumstances. A homeowners association, for example, might have a reserve fund that's used to pay for periodic repairs. Financial advisors recommend that households maintain a reserve fund that's equivalent to three to six months of living expenses. Reserve funds can also be called emergency funds.
Reset
Reset, in finance, refers to the update of an interest rate, so that it retains a specific relationship to a reference rate. On an adjustable-rate mortgage loan, for example, the rate is stated as a margin plus a specified reference rate. If this loan is structured to be reset annually, then the interest rate would be adjusted once a year to reflect any reference rate changes that occurred over the previous 12 months.
Reset frequency
Reset frequency is the rate of occurrence of changes to an interest rate on an adjustable-rate loan. Reset frequency is specified in the loan documentation.
Resident alien
A resident alien is an individual who lives in one country, but has citizenship in another. Resident aliens in the U.S. typically have a current green card, or have had a green card within the last calendar year. In the U.S., resident aliens generally pay the same taxes as U.S. citizens.
Residential mortgage
Residential mortgage is a loan that's secured by residential property. A residential mortgage is generally a long-term debt facility that can be structured with either fixed or adjustable interest. In the U.S., residential mortgage interest is tax-deductible.
Residual income
Residual income is the money left over from earnings after debts are paid. Typically, residual income is analyzed in terms of one month's income and debt requirements; the level of one's residual income is a factor that lenders consider when evaluating a borrower's creditworthiness. Higher residual income indicates that the individual will be more capable of meeting required debt payments when unexpected expenses arise.