Browsing Mortgage Glossary by S

"S" sorted term definitions like securities and subprime loan probably noticed while obtaining a second mortgage or identified while browsing through this directory.

Sale Leaseback
When a seller deeds property to a buyer for a payment, and the buyer simultaneously leases the property back to the seller.
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.
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.
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.
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.
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 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.
Subordinate
To place in a rank of lesser importance or to make one claim secondary to another.
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.

"." HUD.gov. U.S. Department of Housing and Urban Development, n.d. Web. .