S

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.

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

Sales Contract
A written agreement between competent parties stating all terms and conditions of a sale.

Satisfaction of Mortgage
A legal document, usually recorded, that proves that the borrower completely paid off the mortgage. It is given to the borrower by the lender.

Seasoned Loan
A loan that has been closed and on a lender's books for at least 12 months.

Seasoning
A specified time period you must have a second mortgage before you can refinance.

Secondary Financing
Loans secured by the property, but subordinated 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.

Second Home
A property occupied part-time by a person in addition to his or her primary residence.

Second Mortgage
The second-priority claim against a property in the event that the borrower defaults on the loan. A riskier form of lending since the lender who holds the second mortgage gets paid only after the lender holding the first mortgage is paid.

Secured Debt
A debt on which collateral has been pledged by the borrower. The creditor can institute a foreclosure or repossession, or take the property identified by the lien, called the collateral, to satisfy the debt if you default.

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 collateral or property given, deposited or pledged to ensure the fulfillment of an obligation or payment of a debt.

Security Instrument
A recorded legal document given by the borrower to the lender. It pledges the title of the property as insurance to the lender for the full payment of the mortgage. Mortgages, deeds of trust and deeds to secure debt are considered security instruments. The security instrument contains the description of the property.

Security Interest
The legal right or share that the mortgage lender holds to the property.

Seller Carry Back
An agreement in which the owner of a property provides financing, often in combination with an assumed mortgage.

Seller Take-Back
An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.

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
Term used to describe the administration of mortgage loans between the time of loan disbursement and the time the loan is fully paid off. This includes collecting monthly payments from the borrower, maintaining records of loan progress, assuring payments of taxes and insurance, and pursuing delinquent accounts.

Servicing Costs
The expenses incurred by the seller/servicer in servicing loans, including money spent on staff, computer facilities, foreclosure costs, etc.

Servicing Fee
The monthly fee retained by the loan servicer according to the terms of a servicing agreement.

Settlement
The process of finalizing the sale of property that includes the transfer of title from the seller to the buyer.

Settlement Statement
The complete breakdown of costs involved in the real estate transaction for both the seller and buyer.

Single Family Residence
A residential structure designed to include one dwelling.

Sold Loan
A mortgage loan that has been sold to another institution or investor. Sold loans may continue to be serviced by the seller.

Special Assessments
A special tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, streetlights, etc.

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.

Special Lien
A lien that binds a specified piece of property, unlike a general lien, which is levied against all one's assets. It creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person's behalf.

Special Warranty Deed
A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee's title.

Specific Performance
If the buyer backs out of a contract the deller has the right to keep his deposit and also go after the buyer for "Specific Performance." Ie: Make him buy the property or sue him for any amount the Seller may have lost because the Buyer did not complete the contract.

Stand Alone
A Home Equity loan originated without obtaining a Countrywide first mortgage at the same time.

Standby Commitment
A commitment to purchase a loan or loans with specified terms, both parties understanding that delivery is not guaranteed. The commitment is issued for a fee, with willingness to fund in the event that a permanent loan is not obtained. Such commitments are typically used to enable the borrower to obtain construction financing at a lower cost on the assumption that permanent financing of the project will be available on more favorable terms when the improvements are complete and the project generates income.

Standard Mortgage
A type of mortgage loan that carries a fixed interest rate and has fixed monthly payments over the life of the loan. Traditionally, the most common type of conventional mortgage loan.

Stated Loan
A mortgage product available to borrowers who do not wish to prove their income. It is usually designed for self-employed borrowers or borrowers that would rather state their income rather than submit proof of income.

Straight-Term Mortgage
A mortgage loan granted for a fixed term of years, with the entire loan becoming due and payable at the end of that time.

Strict Foreclosure
A legal proceeding in which the lending institution brings court action against the borrower. The court sets a date by which the borrower must redeem his debt in full or title will pass automatically to the lender without public sale.

Subject Property
The property that is the subject of an appraisal.

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. The subordinate loan has a claim to payment in a foreclosure only after the first mortgage is paid.

Subordinate Lien
A lien by which an encumbrance is made subject to or junior to the original lien.

Subordination Clause
A clause which permits the placing of a mortgage at a later date which takes priority over an existing mortgage.

Sub-Prime
A sub-prime loan is any loan in which the borrower has challenges in obtaining mortgage financing because of poor credit, hard to document income or assets, or any unique situation that would prevent them from obtaining funding through "conforming" lenders.

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 measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions and the location and dimensions of any improvements.

Sweat Equity
Equity created in a property by the performance of work or labor by the purchaser or borrower.