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.
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