If you are a Real Estate Professional, you have probably found yourself stumped when your Asset Manager tasks you to do something that is completely baffling! What does that mean? I once got this message, which prompted this post. The message was as follows. I actually printed it out for kicks. 

“NYO b4 CFK, might be na. If the EV Att has to do a pp ev, we will be out 15 days in or, right?” 

Now, I could muddle my way through this message, but I wondered how an agent would feel if this was their first REO listing. I could almost feel the blood pumping in my ears when I tried to imagine how I would feel if I could not understand this person I was trying to impress. 

A 

Acceptance- A buyer’s or seller’s agreement to enter into a contract and be bound by the terms of the offer. 

Adjustable Rate Mortgage (ARM)- Adjustable Rate Mortgage, also referred to as a Variable Rate Mortgage. They both mean the same thing. An ARM is a mortgage with an interest rate that adjusts periodically to reflect changes in market conditions. Your mortgage payments are adjusted up or down (usually on an annual basis) as the interest rate changes. 

Adverse Possession – a means of acquiring title to real estate where an occupant has been in actual, open, notorious, exclusive and continuous occupancy of property for the period required by state law. 

Appraisal – An opinion of value conducted by a licensed appraiser. Values are determined by one of three methods. Comparable sales(residential), replacement cost (inisurance), or income approach (commercial). 

Appraised Value – The dollar figure for a property’s estimated fair market value, based on an appraiser’s knowledge, experience, and ****ysis of the property and comparable properties near by. 

Appraiser – A person qualified by education, training, and experience to estimate the value of real property. 

As-Is – without guarantees as to condition 

Assessed Value – Value placed on property by the County for the purpose of computing real property taxes. 

Assessment – The amount of tax due to local government. May also refer to the amount due to local government or to common owners of a property (e.g., a homeowner’s association) for a special payment to cover expenses for improvements or maintenance, such as new sewers or roads. 

Assignment of Deed of Trust or Mortgage: Assumption by a purchaser of liability for payment of an existing mortgage, or deed of trust. May or may not be accompanied by a release of liability of the original borrower. 

B 

Backup Offer – An offer to purchase property made with the understanding that there is already an accepted offer on the property. A backup offer is formally notified if the offer in first position fails. A backup offer becomes effective if a prior contract fails to be consummated. 

Bankrupt – A person, firm, or corporation that is financially unable to pay debts when due. The debtor seeks relief through a court proceeding to work out a payment schedule or erase debts. In some cases, the debtor must surrender control of all assets to a court-appointed trustee. 

Bankruptcy – A proceeding in a federal court in which a debtor who is financially unable to pay debts when due seeks relief to work out a payment schedule or erase debts. 

Bill Of Sale – A written document that transfers title to personal property from seller to buyer. 

Bird Dog – someone who identifies a potential good real estate investment opportunity and passes that deal on to another investor for a fee. 

Broker’s Price Opinion (BPO) also called a Comparative Market ****ysis. A method of determining value in which selling prices of similar properties are used as the basis for arriving at the value estimate. A BPO is not performed by an appraiser. Institutional sellers usually rely on a BPO prepared by a real estate agent. 

Breach – A violation of terms of any legal obligation. 

Bulk REO – Bulk Real Estate Owned refers to Real Estate Owned which are generally assets that have been foreclosed and owned by a bank, government agency (i.e. Fannie Mae), investor or other institution. Bulk is buying properties in large packages. There are many other common terms that are used that mean basically the same thing including ‘Bulk Foreclosures’, ‘REO Portfolios’ and ‘Bank Owed Real Estate’. 

C 

Cash for Keys (CFK) – When an occupant of a foreclosure is offered money to leave the home void of personal property and in broom swept condition. This is generally offered in lieu of evicition 

Caveat Emptor – let the buyer beware. 

Certificate of Sale – A certificate issued to a buyer at a judicial sale (e.g. foreclosure) 

Certificate of Title – This certificate is issued to a buyer 10 days after the foreclosure sale. 

Certified Funds – Same as cash. Buyer’s monies must be brought to the closing in this form. 

Checklist of Damages – This is a report submitted by the real estate agent making the asset manager aware of any damages located on the property. 

Clear Title – A title that is marketable and is free of liens or disputed legal questions as to ownership of the property. 

Closing – The conclusion or consummation of a transaction. In real estate, closing includes the delivery of a deed, the signing of notes and security instruments, and the disbursement of funds necessary to the sale or loan transaction. Also referred to as settlement. 

Closing Statement – The final accounting of the real estate sale. The closing Statement outlines the costs on both the buyers and the seller’s side of the transaction. 

Cloud On Title – An outstanding claim or lien, revealed by a title search, that adversely affects the owner’s title to real estate. Usually, clouds on title cannot be removed except by a quit claim deed, release, or court action. 

Commitment Letter – A formal notification from a lender stating that the borrower’s loan has been conditionally approved and specifying the terms under which lender agrees make the loan. Also known as a “loan commitment.” 

Comparables (comps) – An abbreviation for “comparable properties”; used for comparative purposes in the appraisal process. Comparables are properties like the property under consideration; they have reasonably the same size, location, and amenities and have recently been sold. Comparables help the appraiser determine the approximate fair market value of the subject property. 

Contingent – Dependent upon conditions or events. There are conditions the institutional seller will consider in an offer to purchase such as the ability of the buyer to obtain a mortgage or perform inspections. The sale of another property to raise sufficient funds is an example of a contingent usually not considered. 

Contract – A promise. Only when an offer to purchase has been fully executed (signed and initialed) by buyer and seller does it become a contract. 

Creditor – A person to whom money is owed. 

Credit Rating – An expression of creditworthiness based upon present financial condition and past credit history. 

Credit Report – A detailed account of the credit, employment and residence history of an individual used by a prospective lender to help determine creditworthiness. Credit reports also list any judgments, tax liens, bankruptcies or similar matters of public record entered against the individual. 

D 

Debt – An amount owed to another. See installment loan and revolving liability. 

Declaration of Default – a document instructing the trustee (usually appointed by a bank) to prepare and record a Notice of Default (NOD), and if necessary, to sell the property at auction in order to satisfy the unpaid obligation or lien. 

Deed – The legal document conveying title to a property. 

Deed-In-Lieu – A deed given by a borrower to the lender to satisfy a debt and avoid foreclosure. Also called a “voluntary conveyance.” 

Deed Of Trust – The document used in some states instead of a mortgage; title is vested in a trustee to secure repayment of the loan. 

Defeasance – clause in mortgage that gives the borrower the right to redeem the property after default by paying the full indebtedness and fees incurred. 

Default – Failure to make loan payments on a timely basis or to comply with other requirements of a mortgage. 

Delinquency – Failure to make mortgage payments when due. 

Default Judgment – Against someone because they failed to show up in court. 

Deficiency Judgment – a court order stating that the borrower still owes money when the security for a loan does not entirely satisfy a defaulted debt. 

E 

Earnest Money – An amount of money given with the offer to purchase as a “good faith” gesture of the buyer’s serious intent. 

Encumbrance – Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, deeds, or restrictions. 

Escrow – The deposit of funds with a bonded neutral third party with instructions to carry out the provisions of a contract. Earnest money deposits are usually held in the trust accounts of a real estate Broker, title company or attorney. 

Eviction – A legal proceeding by a landlord to recover possession of real property from the tenant. 

Exculpatory Clause – provision in a mortgage allowing the borrower to surrender the property to the lender without personal liability. 

F 

Fannie Mae (Federal National Mortgage Association FNMA) – A New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation’s largest source of financing for home mortgages. It adds liquidity to the mortgage market by investing in home loans through the country. 

Federal Fair Housing Law – a federal law that forbids discrimination on the bais of race, color, sex, religion, or national origin in the selling or renting of property. 

Federal Housing Administration (FHA) – An agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and loan underwriting but does not lend money or plan or construct housing. 

Forbearance – a course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower. 

Fee Simple – Complete legal ownership of a property. 

Federal Housing Administration (FHA) – Federal agency that administers FHA insured loans. 

Federal Tax Lien – An obligation to the federal government as a result of non-payment of taxes. 

Foreclosure – The legal process by which a borrower’s interest in mortgaged property is taken because of a default on the loan. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. 

Forfeiture – The loss of money, property, rights, or privileges due to a breach of legal obligation. 

Freddie Mac (Federal Home Loan Mortgage Corporation) – A federal agency within the Department of Housing and Urban Development (HUD), which insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans. 

Full Reconveyance – a document prepared by a trustee, when an obligation secured by a deed of trust, or mortgage, is paid back in full. Once recorded, this reconveyance eliminates the lien from the property’s title. 

G 

Ginny Mae (G.N.M.). – Government National Mortgage Association affectionately known, as Ginnie Mae is an agency in the secondary mortgage market dealing primarily in recycling VA and FHA mortgages. Grantee. The buyer. 

Government Loan – A loan that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with conventional loan. 

Government-Owned (GOV): A foreclosed property offered for sale by the government. When a property purchased with a federally insured mortgage (i.e., FHA, VA) is foreclosed by the lender, the federal government pays the lender what is owed, takes possession of the property, and offers the property for sale. 

Grantee – The person to whom an interest in real property is conveyed (e.g. the buyer). 

Grantor – The person who conveys an interest in real property (e.g. the seller). 

H 

Highest and Best (H&B) – Highest and Best is when an REO Seller Client asks the REO listing agent to put all Buyer’s on notice that multiple offers have been received, and that the Seller is requesting all Buyer’s put their highest and best offers in for consideration. 

Highest and Best Use – the use that is most likely to produce the greatest net return to the land and/or building over a given period. 

Home Equity Line Of Credit (HELOC) – A mortgage loan, which is usually in a subordinate position, that allows the borrower to obtain multiple advances of the loan proceeds at his or her own discretion, up to an amount that represents a specified percentage of the borrower’s equity in a property. 

HUD Department of Housing and Urban Development (HUD), an agency that oversees FHA. FHA foreclosures are called HUD Homes. 

HUD-1 Settlement Statement – A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller’s net proceeds and the buyer’s net payment at closing. The blank form for the statement is published by the Department of Housing and Urban Development (HUD). The HUD-1 statement is also known as the “closing statement” or “settlement sheet.” 

I 

Initial Interest Rate – The starting interest rate for an adjustable-rate mortgage (ARM) loan or variable-rate home equity line of credit. At the end of the effective period for the initial rate, the interest rate adjusts periodically during the life of the loan based on changes in a specified financial index. Sometimes known as “start rate,” “intro rate” or “teaser rate.” 

Initial Services – Preliminary services that are completed on an REO once vacated. Securing, trash-out/Janitorial, lawn services, then winterizing. 

Interest – The amount the lender charges to lend you money. 

Institutional Lender – Financial institutions whose loans are regulated by law such as banks, credit unions and commercial loan agencies. 

Involuntary Lien – A lien imposed against property without the owner’s consent such as taxes, special assessments, federal income taxes, etc. 

J 

Judgment – A decree by a court of law that one person, a debtor, is indebted to another, a creditor, in a specified amount. The court may place a lien against the debtor’s real property as collateral for payment of the judgment to the creditor. 

Judgment Creditor – one who has received a court decree or judgment for money due from a debtor. 

Judgment Lien – A lien on the property of a debtor resulting from a judgment. 

Judicial Foreclosure – A type of foreclosure proceeding used in some states that is handled as a civil lawsuit where the court confirms the sales price for the property and the distribution of the sale proceeds. 

Junior Lien – A lien that does not have first priority making the property security for payment of a debt. A senior lien would have priority over a junior lien. 

K 

Kicker – A payment required by a mortgage in addition to normal principal and interest. 

Know Your Options (KYO) – The Know Your Options Document is used to notify an occupant of a foreclosure, what their options are. This document is posted in a visible location for the occupant to easily see upon their return. It has the REO Foreclosure Agents contact information and details the options available to the tenant. 

L 

Letter of Intent (LOI) The buyer provides an Letter of intent. It lays out the parameters of the intended purchase, including price, locations and types of properties. The letter of intent will initiate the process. 

Liabilities – A person’s debts or financial obligations. Liabilities include long-term and short-term debt, as well as potential losses from legal claims. 

Lien – An encumbrance using the property as security for the payment of a debt or obligation of the property owner. 

Line Of Credit – An agreement by a lender to extend credit up to a certain amount for a certain time without the need for the borrower to file another application. See home equity line of credit. 

Lis Penden (LIS): Notification of pending lawsuit. The initial document filed by an attorney or trustee that starts the judicial foreclosure process after the occurrence of default under the deed of trust or mortgage. A LIS is issued in the PRE-foreclosure process. 

M 

Market Value – The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property being exposed for sale for a reasonable period of time. The market value of a a piece of property is the price that it might be expected to bring if offered for sale in a fair market; not the price that might be obtained on a sale at public auction or a sale forced by the necessities of the owner, but such a price as would be fixed by negotiation and mutual agreement, after ample time to find a purchaser, as between a vendor who is willing (but not compelled) to sell and a purchaser who desires to buy but is not compelled to take the particular article or piece of property. 

Master Fee Agreement (MFA) – Outlines the parties involved in a Bulk REO transaction and how each group will be compensated. Also referred to as a MFPA (Master Fee Protection Agreement). 

Master Listing Agreement – This is the listing contract between an REO Agent and Client selling foreclosures. 

Mechanic’s Lien – A lien placed on property by laborers or material suppliers who have contributed to an improvement. 

Modification – The act of changing any of the terms of the mortgage. 

Monthly Status Report – This is a monthly report to be provided by the REO Listing Agent. This helps the bank to be aware of showing activity, market changes, and more. 

Mortgage – A legal conveyance of property to a creditor, given as security for the payment of a debt. Between borrower and lender. 

Mortgage Insurance – A contract that insures the lender against loss caused by a borrower’s default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a government agency such as the Federal Housing Administration (FHA). Depending on the type of mortgage insurance, the insurance may cover a percentage of or virtually all of the mortgage loan. See private mortgage insurance (PMI). 

Mortgage Insurance Premium (MIP) – The amount paid by a borrower for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company 

Mortgagee – The lender. 

Mortgagor – The borrower. 

MLS – Multiple Listing Services run by local Realtor associations. 

N 

Note Broker – An individual who acts as an intermediary between a holder of an existing note and a prospective purchaser of the note. 

Notice of Default (NOD) – A notice filed to show that the borrower under a mortgage is in default. A notice of default is only applicable in non-judicial foreclosures. A NOD takes place in the pre-foreclosure process. 

Novation – The substitution of a new contract between the same, or different parties; a substitution, by mutual agreement, of one debtor for another, or one creditor for another. The result is that the old contract is extinguished, and a new contract is created, usually with the same content, but with at least one different party. 

O 

Occupancy Check – When the REO Listing Agent goes to a home to determine if it is currently occupied, and by whom. 

Other Real Estate Owned – (OREO) – Refers to real property owned by a bank that does generally have a “home lending dept” per se. It’s a REO that is the result of foreclosure on a property as a result of default by the borrower who used the property as collateral for the another type of loan. P 

Points – A charge made by the lender for loaning money. One point equals one percent of the loan. 

Portfolio Loan – Loan originated and held ‘in house’ as part of a lender’s investments. A non-conforming loan that is held by the original lender rather than being sold on the secondary market. 

Post Notice – The REO Listing Agent posts notice on the subject home. This notice lets the occupant of a home know what steps they need to take once a home has been taken back by way of foreclosure. 

Postponement – a verbal announcement made at the time and location of the scheduled trustee’s sale, rescheduling the auction for a later date. 

Probate – The process of establishing the validity of a will before a duly authorized court or person. Once validity is confirmed, the probate court then administers the sale of property as directed by the will or as authorized by the court to settle any financial obligations. 

Publication Letter – a letter, when signed by the beneficiary (lender), authorizing the trustee to prepare, publish and record the Notice of Trustees Sale (notice of auction). 

Publication Period – a period beginning at the expiration of the default period, and ending when the trustee’s sale has been conducted. During the publication period, the Notice of Trustees Sale is published, posted and recorded. 

Private Mortgage Insurance (PMI) required as part of the monthly payment in loans less than 80% loan to value (less than 20% down payment). 

Pre-foreclosure – Period between when a borrower becomes delinquent and the property is foreclosed upon. 

Preforeclosure Sale – A procedure in which the investor allows a mortgagor to avoid foreclosure by selling the property, typically for less than the amount that is owed to the lender. 

Pre-Qualification – A preliminary ****ysis of a borrower’s ability to afford the purchase of a home. An affordability ****ysis takes into consideration factors such as income, liabilities, and available funds, along with the type of home loan, the likely taxes and insurance for the home, and the estimated closing costs. 

Primary Residence – The place someone lives most of the time 

Principal – A person acting for him/herself in a transaction. Also the amount of a loan exclusive of interest. 

Private Mortgage Insurance (PMI) – Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 %. 

Property Value – LTV or Loan to Value Ratio refers to the relationship between the unpaid principal balance of the mortgage and the property’s appraised value (or sales price if it is lower). 

Proof Of Funds (POF) The bank will usually require POF before allowing an REO Foreclosure offer to be submitted by a Buyer. This document shows that the Buyer has liquid assets sufficient to cover the dollar amount offered to purchase. 

Public Auction – A meeting in an announced public location to sell property to repay a mortgage that is in default. 

Purchase Agreement – A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. 

Purchase Money Transaction – A loan used in part as payment for a purchase. A loan that is used to buy a home is called a purchase money mortgage. 

Purchase Price – The total amount paid for a home. 

Q 

Qualifying – Process of demonstrating a person is credit worthy and has enough money to buy a property. Institutional sellers may require “proof” in the form of a letter from a lender or some verification of the source of funds if the sale is cash. 

Quiet Title – Legal process to eliminate title problems. 

Quitclaim – A form of deed in which the grantor is giving the grantee rights to a property but makes no warranties about rights others may have. 

R 

Real Estate Agent – A person who is normally licensed by the state and who, for a commission or a fee, assists in negotiating a real estate transaction. 

Real Estate Settlement Procedures Act (RESPA) – A consumer protection law that, among other things, requires advance disclosure of settlement costs to home buyers and sellers, prohibits certain types of referral and other fees, sets rules for escrow accounts, and requires notice to borrowers when servicing of a home loan is transferred. 

Real Property – Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof. 

Realtor – A broker or sales agent who is a member of a local real estate board affiliated with the National Association of Realtors. 

Recession of Notice of Default – After an amount in default has been cured, or paid-back, this document, when signed by the lender and recorded by the trustee, removes the burden of the previously recorded Notice of Default. Recorder – The public official who keeps records of transactions that affect real property in the area. Sometimes known as a “Registrar of Deeds” or “County Clerk.” 

Recording – The noting in a book of public record of the terms of a legal document affecting title to real property, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage. 

Recourse – ability of lender to make claims against borrower personally in addition to the collateral. 

Redemption Period – period during which a former owner can reclaim foreclosed property. 

Reinstatement Period – The time period beginning when the Notice of Default is recorded, and ending five business days before the trustee’s auction sale. The default may be cured, or paid-back, at any time during this period by paying all delinquent amounts, including the trustee’s fees and costs. R.E.O. – An abbreviation for Real Estate Owned most commonly used to describe properties acquired in foreclosure and owned by institutions. 

Rekey – To rekey a property is to change out existing locks to disable someone to gain access who had the keys to the home before changing ownership. This is a crucial step in securing the home. 

Request For Notice of Default – A recorded document that obligates the holder of the first mortgage lien to notify subordinate lien holders in the event of default by the borrower. 

Right of Redemption – Right to buy a property back for a limited period of time (usually 10 days) after a foreclosure sale. 

S 

Secondary Mortgage Market – Fannie Mae, Freddie Mac, Ginnie Mae were originally chartered by the federal government to stimulate the economy by either buying or recycling packages of loans from financial institutions. 

Securing the property – in REO Securing the property generally means to have the locks changed and any potential hazards eliminated or contained. Securing the property often happens after the home has been vacated. 

Servicer – An organization that collects principal and interest payments from borrowers and manages borrowers’ tax and insurance escrow accounts. A mortgage banker is often paid a fee to service mortgages that have been purchased by an investor in the secondary mortgage market. 

Servicing – The collection of principal and interest payments from borrowers and management of borrowers’ tax and insurance escrow accounts. 

Settlement Statement – also known as Closing Statement or HUD-1. A Settlement Statement details all costs to Buyer and Seller for closing a sale. 

Sheriff’s Deed – Deed given by court order to satisfy a judgment. 

Short Sale – A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. 

Special Warranty Deed – See warranty deed. “Special” indicates there are limitations. The grantor limits the title warranty given to the grantee, does not warrant against title defects arising from conditions that existed before grantor owned the property. 

Squatter – An individual who settles on the property without any legal authority to do so, or without acquiring a legal title. Used interchangeably with intruder or trespasser. 

Subprime – Subprime Lending is also called B&C lending. It refers to a category of loan programs that offer more lenient underwriting provisions and expanded credit guidelines. These provisions allow more flexibility in approving loans for borrowers who have less-than-perfect credit. Subprime loans are available at various interest rates and terms. They also offer capabilities for debt consolidation allowing borrowers to get a mortgage with enough extra cash to consolidate loans. 

T 

Tape or package -This is the actual list of properties being offered for sale and has been created based on Buyer or Seller criteria. It is usually offered exclusively for some period of time and in most cases must be bought as a package (i.e. no cherry picking). 

Tenancy Checklist – This checklist is used to identify any occupants of a REO. 

Third Party Fees – Fees collected by lender for services provided by other companies, such as an appraiser. 

Title – Evidence that an owner is in lawful possession; instrument evidencing ownership. 

Title Defect – an unresolved claim against the ownership of property, prevents seller from providing buyer clear title to the property 

Title Insurance – Policy written by a title company to protect a property owner against loss if the title is imperfect. 

Title Search – A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding. 

Trash-out – To trash out a property means to have a preservation crew remove all remaining personal property and to leave in broom swept condition.

Trespassing – The wrongful invasion of another’s real property. Anyone who interferes with the right of ownership or possession. 

Truth-in-Lending – A federal law that requires lenders to fully disclose, in writing, the terms and conditions of credit, such as a mortgage, including the annual percentage rate (APR) and other charges. 

Trustee – A fiduciary who holds or controls property for the benefit of another. 

U 

Unrecorded Deed – instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of the change in ownership. V 

VA Mortgage – A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a government mortgage. 

Variable Rate – An interest rate that changes periodically in relation to an index. Payments may increase or decrease per the terms of the loan agreement or note. 

Valuation – The estimated worth or price. A valuation can be referring to either an appraisal completed by a licensed appraisal, or a Broker Price Opinion (BPO) completed by a licensed real estate agent. 

Vendor – a seller of real estate. 

Vendor Manager – A professional who selects the REO Agent to list a REO Foreclosure. A vendor manager generally works for an Asset Management Company, Servicer, or a Bank. 

Vested – Having the right to use a portion of a fund such as an individual retirement fund. For example, individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a retirement fund. However, taxes may be due on any funds that are actually withdrawn. 

Veterans Affairs, Department of (VA) – An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans. 

W 

Warranty Deed – Assures the title conveyed is good and possession will be undisturbed. 

Winterize – To prepare or equip a home for winter weather. Protects from water damage by eliminating all water from a home.