A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
S
- Sales
agreement
See Purchase and sale agreement.
- Satisfaction
of mortgage
The document issued by the mortgagee when the mortgage loan is paid in full. Also called a
"release of mortgage."
- Second
mortgage
A mortgage made subsequent to another mortgage and subordinate to the first one.
- Secondary mortgage market
The market in which residential mortgages or mortgage securities are bought and sold.
- Security
A financial instrument showing ownership of equity (such as common stock), indebtedness
(such as a debt security), a group of mortgages (such as MBS), or potential ownership
(such as an option).
- Seller
carry-back
An agreement in which the owner of a property provides financing, often in combination
with an assumable mortgage.
See Owner financing.
- Serious
delinquency
A single-family mortgage that is 90 days or more past due, or a multifamily mortgage that
is two months or more past due.
- 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
All steps and operations a lender performs to keep a loan in good standing, such as
collection of payments, payment of taxes, insurance, and property inspections.
- Settlement/Settlement Costs
See Closing/Closing costs.
- Shared
Appreciation Mortgage (SAM)
A mortgage in which a borrower receives a below-market interest rate in return for which
the lender (or another investor such as a family member or other partner) receives a
portion of the future appreciation in the value of the property. May also apply to
mortgage where the borrowers shares the monthly principal and interest payments with
another party in exchange for part of the appreciation.
- Simple
interest
Interest which is computed only on the principle balance.
- Special assessments
A special tax imposed on property, individual lots or all property in the immediate area,
for road construction, sidewalks, sewers, street lights, etc.
- 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. In some localities it is called "particular" lien or
"specific" lien. See Lien.
- 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.
- 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.
- Stockholders'
equity
The sum of proceeds from the issuance of stock and retained earnings less amounts paid to
repurchase common shares.
- Stripped
MBS (SMBS)
Securities created by "stripping" or separating the principal and interest
payments from the underlying pool of mortgages into two classes of securities, with each
receiving a different proportion of the principal and interest payments.
- Survey
A map or plat made by a licensed surveyor showing the results of measuring the land with
its elevations, improvements, boundaries, and its relationship to surrounding tracts of
land. A survey is often required by the lender.
- Sweat
equity
Equity created by a purchaser performing work on a property being purchased.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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