sale-leaseback
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
mortgage
A mortgage that has a lien position subordinate
to the first mortgage.
secondary mortgage market
The buying and selling of existing mortgages.
secured loan
A loan that is backed by collateral.
security
The property that will be pledged as collateral
for a loan.
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’ escrow accounts. The servicer often
services mortgages
that have been purchased by
an investor in the secondary mortgage market.
servicing
The collection of mortgage payments from
borrowers and related responsibilities
of a loan
servicer.
settlement
See closing.
settlement sheet
See HUD-1 statement.
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.
standard payment calculation
The method used to determine the monthly payment
required to repay the remaining
balance of a
mortgage in substantially equal installments
over the remaining term
of the mortgage at the
current interest rate.
step-rate mortgage
A mortgage that allows for the interest rate to
increase according to a specified
schedule
(i.e., seven years), resulting in increased
payments as well.
At the end of the specified
period, the rate and payments will remain
constant for the remainder of the loan.
subdivision
A housing development that is created by
dividing a tract of land into individual
lots
for sale or lease.
subordinate financing
Any mortgage or other lien that has a priority
that is lower than that of the first mortgage.
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 of the debt may
be forgiven incrementally for each year
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 rather than cash.
