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S

Sale-leaseback

A technique in which a seller deeds property to a buyer for a consideration, and the buyer simultaneously leases the property back to the seller.

Second home

A property occupied part-time by a person in addition to his or her primary residence.

Second mortgage

A mortgage that has a lien position subordinate to the first mortgage.

Secondary Mortgage Market

An informal market where lenders and investors buy and sell existing mortgages. Government-sponsored entities and private investors buy mortgages from lenders who use the proceeds to make additional loans.

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.

Seller Carry Back

An agreement in where the owner of a property provides financing. This is often in combination with an assumed mortgage.

Servicer

An organization that collects principal and interest payments from borrowers and manages borrowers' tax and insurance escrow accounts. A mortgage banker is often paid a fee to service mortgages that have been purchased by an investor in the secondary mortgage market.

Servicing

The collection of principal and interest payments from borrowers and management of borrowers' tax and insurance escrow accounts.

Settlement:

Another name for closing.

Short Sale

A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

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.

Stated Income Loan

A type of reduced documentation mortgage program which allows the borrower to state on the loan application what their income and assets are without verification by the lender; however, the source of the income is still verified.

Stated Income Stated Assets Loan (SISA)

This loan has no assets being verified. You only state your income and state your assets on the application. This program may have a slightly higher interest rate because the assets are not verified.

Stated Income Verified Assets Loan (SIVA)

Loan approval is based on your stated income, credit history, and verified liquid assets (bank accounts, 401k, stocks, bonds, etc.). The Verified Assets should be consistent with the income claimed.

Subordinate

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

Subordinate:

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

Subordination Agreement

An agreement between two entities describing which is inferior and which superior to the other in lien position. The subordinate lien is sometimes referred to as being "second place" or "second position". Most commonly used when two mortgages are on a single property.

SubPrime Loans

A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Quite often, subprime borrowers are often turned away from traditional lenders because of their low credit ratings or other factors that suggest that they have a reasonable chance of defaulting on the debt repayment.

Super Jumbo Loans

Super Jumbo Mortgages are loans that are over $650,000. We lend anywhere from $650,000 up to $20,000,000

Survey

A property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.

Survey:

a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.

Sweat Equity Mortgage Loans

A program that gives a buyer part or all of the money for a down payment in exchange for hours of labor helping to build the home. This program has very specific guidelines and is typically not available to conventional borrowers.

Sweat equity:

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