| Sale-Lease Back |
A technique in which a seller deeds property to a buyer for a
consideration, and the buyer simultaneously leases the property back to the
seller. |
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| Sales Contract |
A written agreement stating the terms of the sale agreed to by
both buyer and seller. |
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| Satisfaction Mortgage |
The recordable instrument issued by the lender verifying full
payment of a mortgage debt. |
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| Second Home |
A property occupied part-time by a person in addition to his
or her primary residence. |
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| Second Mortgage |
Financing real estate with a loan or loans that are
subordinate to the first mortgage. It usually calls for a higher interest rate
and a shorter repayment period. |
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| Second Home (Vacation Home, Weekend Home) |
A residence other than the borrower's primary residence which
the borrower intends to occupy for a portion of each year. Must be suitable for
year-round occupancy. |
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| Secondary Mortgage Market |
The lender will frequently sell his loan to an entity in the
secondary mortgage market. This secondary market has nothing to do with second
mortgages, instead, it consists of government or private associations which buy
loans from primary lenders. Often the loans are bought and grouped together in
a pool for resale. The best known of the participants in the secondary mortgage
market is FANNIE MAE, the federal national mortgage association. Fannie Mae
buys and sells both first and second mortgages. GINNIE MAE tends to favor FHA
and VA loans since they are stable loans but also buys conventional mortgages.
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| Secondary Financing |
A loan secured by a mortgage or trust deed, which lien is
junior to another mortgage or trust deed. |
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| Secured Loan |
A loan that is backed by collateral. If the borrower defaults,
the lender can sell the collateral to satisfy the debt. |
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| Security Deposit |
Money or other valuable consideration deposit by a Tenant
with a Landlord to insure the Tenants performance under a Lease or Rental
Agreement |
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| Security Interest |
An interest a lender takes in the borrower's property to
assure repayment of a debt. If the borrower defaults, the lender can sell the
collateral to satisfy the debt. |
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| Security |
The property that will be pledged as collateral for a loan. If
the borrower defaults, the lender can sell the collateral to satisfy the debt.
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| Self Amortized Loan |
A loan which will retire the debt by systematic payments of
principal and interest, so that at the end of the loan period, the balance will
be zero. |
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| Seller Take-Back |
An agreement in which the owner of a property provides
financing, often in combination with an assumable mortgage. See owner
financing. |
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| Seller's Market |
More buyers than sellers. |
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| Septic System |
A sewage system, whereby waste is drained through pipes and a
tile field into a septic tank. |
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| 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. |
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| Servicing a Loan |
The ongoing process of collecting your monthly mortgage
payment, including accounting for and payment of your yearly tax and/or
homeowners insurance bills. |
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| Servicing |
The collection of principal and interest payments from
borrowers and management of borrowers' tax and insurance escrow accounts. |
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| Set Back |
The distance a building must be set back from the property
lines in accordance with local zoning ordinances or deed restrictions. |
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| Set Back Ordinance |
Regulates the distance from the lot line to the point where
improvements may be constructed. |
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| Settlement Statement |
A statement prepared by broker, escrow, or lender, giving a
complete breakdown of costs involved in a real estate sale. |
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| Settlement Services |
Services provided by the lender at the closing of a loan. |
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| Settlement Sheet (or HUD-1) |
The computation of costs payable at closing that determines
the seller's net proceeds and the buyer's net payment. |
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| Shared Appreciation Mortgage - SAM |
A mortgage in which a borrower receives a below-market
interest rate in return for which the lender or investor, receives a portion of
the future appreciation in the value of the property. May also apply to
mortgage where the borrowers share the monthly principal and interest payments
with another party in exchange for part of the appreciation. |
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| Sheriff's Deed |
Deed given at sheriff's sale in foreclosure of mortgage. |
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| Signed Sealed and Delivered |
A phrase indicating that everything necessary to convey has
been done by the grantor. |
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| Simple Interest |
Interest computed only on the principal balance. |
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| Single Family Residence |
A residential structure designed to include one dwelling.
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| Special Assessment |
Legal charge against real estate by a public authority to pay
cost of public improvements such as: street lights, sidewalks, street
improvements, etc. |
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| Special Deposit Account |
An account that is established for rehabilitation mortgages to
hold the funds needed for the rehabilitation work so they can be disbursed from
time to time as particular portions of the work are completed. |
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| Special Warranty Deed |
A warranty deed which, instead of warranting the title from
sovereignty of the soil to the last grantee, merely warrants the title against
every person whomsoever lawfully claiming or to claim the same, or any part
thereof, by, through or under the grantor. |
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| Specific Lien |
A claim that only applies to or affects a certain property or
group of properties. |
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| Specific Performance |
An action to compel the performance of a contract, when money
damages for breach would not be satisfactory. |
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| Stand Alone |
A Home Equity loan originated without obtaining a Countrywide
first mortgage at the same time. |
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| Start Rate |
See initial interest rate. |
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| Start Month |
The date you will begin adding an extra dollar amount to your
regular monthly payments. Enter the payment number from 1 to 360 (e.g., if you
will start paying extra principal at the start of year 5 of a 30 year loan,
enter "49". |
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| Start Date |
The date you want to use as the start date for the
amortization, usually the date you closed on your loan or today's date. |
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| Statute of Frauds |
The law which requires among other things, that all contracts
transferring real estate, or for the leasing of property for over one year,
must be in writing to be enforceable. |
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| Statutory Lien |
An involuntary lien, includes tax liens, judgment liens,
mechanic liens, etc. |
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| Statutory Year |
A year composed of twelve months, each with thirty (30) days,
for a total of 360 days in a statutory year. Also known as a banker's year.
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| Steering |
The illegal practice of directing members of minority groups
to, or away from, certain areas or neighborhoods; Channeling. |
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| Sub-Escrow |
Are fees charged by the escrow company for allowing the
borrower to be able to sign all the loan documents in the Escrow office instead
of having to go to the lenders office. |
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| Subdivision |
A housing development that is created by dividing a tract of
land into individual lots for sale or lease. |
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| Subject to Mortgage |
The buyer of an already mortgaged property makes the payments,
but does not take personal responsibility for the loan. Should the mortgage be
foreclosed and the property sold for a lesser amount than is owed, the
grantee-buyer is not personally liable for the deficiency, but the
grantor-seller is. |
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| Subordinate Financing |
Any mortgage or other lien that has a priority that is lower
than that of the first mortgage. The subordinate loan has a claim to payment in
a foreclosure only after the first mortgage is paid. |
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| Subpoena |
A legal process ordering a witness to appear and give
testimony or to present documents under penalty of law. |
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| 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. |
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| Subsidized Second Mortgage |
An alternative financing option known as the Community
Seconds® mortgage for low- and moderate-income households. An investor
purchases a first mortgage that has a subsidized second mortgage behind it. The
second mortgage may be issued by a state, county, or local housing agency,
foundation, or nonprofit corporation. Payment on the second mortgage is often
deferred and carries a very low interest rate (or no interest rate). Part or
all of the second mortgage debt may be forgiven depending on how long the buyer
remains in the home. |
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| Substitute of Trustee |
A document which is recorded to change the trustee under the
deed of trust. |
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| Substitution, Principle of |
The principle which states that a buyer will pay no more for a
property than the cost of an equally desirable alternative property. |
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| Suit for Specific Performance |
A legal action brought by either a buyer or a seller to
enforce performance of the terms of a contract. |
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| Survey |
A map or plat made by a licensed surveyor showing the results
of measuring the land with its elevations, improvements, boundaries, and its
relationship to surrounding tracts of land. A survey is often required by the
lender to assure him that a building is actually sited on the land according to
its legal description. |
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| Sweat Equity |
Contribution to the construction or rehabilitation of a
property in the form of labor or services performed personally by the owner.
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