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
A subordinate mortgage made in addition to a first mortgage.
Secondary Mortgage Market
The 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.
Servicing (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 (Closing)
): Meeting between buyer, seller and lender or their agents at which property funds legally change hands.
Settlement Cost (HUD Guide)
Booklet that provides an overview of the lending process, given to consumers after completing their loan application.
Settlement Costs
See Closing Costs.
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.
Short Sale
The sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.
Simple Interest
Interest computed only on the principle balance.
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 each year the family remains in the home.
Survey
A 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.