Sale Agreement: Contract signed by buyer and seller stating the terms and conditions under which a property will be sold.
Satisfaction: The payment of a debt which satisfies an obligation.
Second Mortgage: subordinate mortgage made in addition to a first mortgage.
Secondary Mortgage Market: he market into which primary mortgage lenders sell the mortgages to obtain funds to originate more new loans. Includes investors like Fannie Mae and Freddie Mac.
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.
Security Instruments : Set of legal documents that enable the lender to obtain and record a valid lien on the subject property to act as security for the loan.
Servicing (or Loan Administration) : The collection of mortgage payments from borrowers and related responsibilities (such as handling escrows for property tax and insurance, foreclosing on defaulted loans and remitting payments to investors).
Settlement (or Closing): Meeting between the buyer, seller and closing agent at which property and funds legally change hands.
Settlement Costs: See Closing Costs
Settlement Cost (HUD guide): Booklet published by the department of Housing and Urban Development (HUD) that provides an overview of the lending process, given to consumers after completing their loan applications.
Settlement Sheet: The computation of costs payable at closing which determines the seller's net proceeds and the buyer's net payment.
Shared Appreciation Mortgage (SAM): Loan in which the borrower is given a below-market interest rate and the lender receives a portion of the future appreciation of the property value.
Signature Affidavit: Document that records your legal name and signature.
Signing Fee: Fee paid to a notary or signing service to execute your loan documents.
Simple Interest: Interest computed only on the principal balance.
Start Rate: The interest rate that you pay on your outstanding balance for the introductory period, which is typically 90 days.
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.
Subsidized Second Mortgage: Alternative financing option for low- and moderate-income households that also includes a down payment and a first mortgage, with funds for the second mortgage provided by city, county, or state housing agencies, foundations, or nonprofit corporations. Payment on the second mortgage is often deferred and carries a low interest rate (if any). Part of the debt may be forgiven for each year the family remains in the home.
Survey: measurement of land, prepared by a licensed surveyor, showing a property’s boundaries, elevations, improvements, and relationship to surrounding tracts.
Sweat Equity: Value added to a property by improvements made by the owner.
