as a “short sale.”
Primary or Principal Residence: The property in which the homeowner will live most of the time, as distinct from a second home or an investment property that will be rented. Principal Reduction: The reduction in loan balance which occurs with each payment of a positively amortized mortgage. Private-Label Mortgages: Loans that are not owned, guaranteed or insured by Fannie Mae, Freddie Mac, Ginnie Mae, or another Federal agency. Recast/Re-Amortize: In certain instances when a substantial payment or contribution is made to reduce the unpaid principal balance of a homeowner’s mortgage loan, the homeowner could have the unpaid principal balance recast or re-amortized. This is when the mortgage company recalculates the monthly payment based on the lowered principal balance, using the same interest rate and time remaining under the existing mortgage terms. Refinance: The process of replacing an existing mortgage with a new one by paying off the existing debt with a new loan under different terms. Repayment Plan: A process in which a homeowner promises to pay down past due amounts on a mortgage while continuing to make regular monthly payments on a property. Second Mortgage: A loan with a second-priority claim against a property in the event that the homeowner defaults. The lender who holds the second mortgage gets paid only after the lender holding the first mortgage is paid. Servicer: A mortgage company that works on behalf of the lender in support of a mortgage, including collecting mortgage
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