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Real Estate Glossary
To view a real estate term, click on one of the letters below.
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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.
Second Home - A property occupied part-time by a person in addition to his or
her primary residence.
Second Mortgage - A mortgage that has a lien position subordinate to the first
mortgage.
Secondary Mortgage Market - An informal market where lenders and investors buy
and sell existing mortgages. Government-sponsored entities and private investors
buy mortgages from lenders who use the proceeds to make additional loans.
Secured Loan - A loan that is backed by collateral. If the borrower defaults,
the lender can sell the collateral to satisfy the debt.
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.
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.
Seller Take-Back - An agreement in which the owner of a property provides
financing, often in combination with an assumable mortgage. See owner financing.
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 - See closing.
Settlement Sheet - See HUD-1 settlement statement.
Single Family Residence - A residential structure designed to include one
dwelling.
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.
Stand Alone - A Home Equity loan originated without obtaining a Countrywide
first mortgage at the same time.
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.
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".
Start Rate - See initial interest rate.
Subdivision - A housing development that is created by dividing a tract of land
into individual lots for sale or lease.
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.
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.
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.
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.
Survey - A drawing or map showing the precise legal boundaries of a property,
the location of improvements, easements, rights of way, encroachments, and other
physical features.
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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