Sale Leaseback

When a seller deeds property to a buyer for a payment, and the buyer simultaneously leases the property back to the seller.

Secondary Mortgage Market

The buying and selling of mortgage loans. investors purchase residential mortgages originated by lenders, which in turn provides the lenders with capital for additional lending.

Second Mortgage

An additional mortgage on property. in case of a default the first mortgage must be paid before the second mortgage. second loans are more risky for the lender and usually carry a higher interest rate.

Secured Loan

A loan backed by collateral such as property.

Security

The property that will be pledged as collateral for a loan.

Seller Take Back

An agreement where the owner of a property provides second mortgage financing. these are often combined with an assumed mortgage instead of a portion of the seller's equity.

Serious Delinquency

A mortgage that is 90 days or more past due.

Servicer

A business that collects mortgage payments from borrowers and manages the borrower's escrow accounts.

Servicing

The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

Setback

The distance between a property line and the area where building can take place. setbacks are used to assure space between buildings and from roads for a many of purposes including drainage and utilities.

Settlement

Another name for closing.

Settlement Statement

A document required by the real estate settlement procedures act (respa). it is an itemized statement of services and charges relating to the closing of a property transfer. the buyer has the right to examine the settlement statement 1 day before the closing. this is called the hud 1 settlement statement.

Special Forbearance

A loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

Subordinate

To place in a rank of lesser importance or to make one claim secondary to another.

Sub-Prime Loan

"b" loan or "b" paper with fico scores from 620 - 659. "c" loan or "c" paper with fico scores typically from 580 to 619. an industry term to used to describe loans with less stringent lending and underwriting terms and conditions. due to the higher risk, sub-prime loans charge higher interest rates and fees.

Survey

A property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc. surveys are conducted by licensed surveyors and are normally required by the lender in order to confirm that the property boundaries and features such as buildings, and easements are correctly described in the legal description of the property.

Sweat Equity

Using labor to build or improve a property as part of the down payment

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