| Sale-Leaseback
|
Technique in which a seller deeds property to a
buyer for a consideration and the buyer simultaneously leases the
property back to the seller, usually on a long-term basis.
|
| Sales Comparison Approach to Value
|
Method of measuring the value of a
property based on an analysis of comparable sales, contract offerings,
and listings of properties that are the most comparable to the property
that is being appraised. Also known as market data approach.
|
| Sales Concessions/Inducements to Buy
|
Considerations made by the
seller, as an inducement to purchase the property.
|
| SATISFACTION |
Discharge of an obligation by payment of the amount due, as on a
mortgage, trust deed or contract or payment of a debt awarded, such as a
satisfaction of a judgment.
|
| Satisfaction of Mortgage |
Recordable instrument given by the lender to
evidence payment in full of the mortgage debt. Also known as a release
deed.
|
| SCHEDULE A |
A section of the Preliminary Title Report/Title Commitment that lists
the name of the proposed insured, amount of title insurance, estate or
interest in the land, how legal title is vested and the legal
description of the property.
|
| SCHEDULE B |
A section of the Preliminary Title Report/Title Commitment that lists
exceptions to title if any.
|
| Seasoned Mortgage |
Mortgage that has been closed for more than one
year. Some lenders require 6 months seasoning only.
|
| Seasoning |
Maturing of a mortgage. Length of time that has passed since
origination.
|
| Second Mortgage |
Mortgage that has rights secondary
to the first mortgage, i.e., the proceeds from a foreclosure sale must
pay the first mortgage before any funds can go to repay the second
mortgage.
|
| SECONDARY FINANCING |
A loan secured by a 2nd mortgage or trust deed of real property. Same as
PIGGYBACK LOAN.
|
| SECONDARY MARKET |
The financial markets where groups of loans are sold to investors.
Example: Primary mortgage lenders originate loans while the secondary
market sells funded loans.
|
| SECONDARY RESIDENCE |
A property used by a person as a second residence, not as an investment.
|
| SECTION 32 |
A section of the Federal Truth-in-Lending Act pertaining to high fee
loans and the restrictions and compliance issues with which this type of
loan transaction must comply.
|
| Secured Party |
Party holding a security interest or lien. Also known as
the mortgagee, the conditional seller, or the pledgee.
|
| Security |
(1) Collateral given, deposited, or pledged to secure the
fulfillment of an obligation or the payment of a debt.
(2) Instrument
that provides evidence of debt or of rights to share in earnings or the
distribution of property.
|
| SECURITY INSTRUMENT |
The security instrument is used to identify and encumber the real
property used as collateral for the loan. It’s notarized and then
recorded with the county in which the property is located. Once
recorded, it secures an interest in, or lien against, the property. The
security instrument used is state specific. Examples are, deed of trust,
security deed, a trust deed or a mortgage. So, it's a mortgage or trust
deed evidencing the pledge of real estate security as distinguished from
the Note or other credit instrument.
|
| Security Interest |
Interest of a creditor in the property of a debtor.
|
| Servicing |
Collection of payments and management of operational
procedures related to a mortgage.
|
| SERVITUDE |
A burden resting upon one estate for the benefit or advantage of
another. An agreement granting limited permission to use the property.
Same as LAND BURDEN.
|
| SETTLEMENT STATEMENT
|
Final statement of the actual settlement costs of the loan . A Federal
requirement under RESPA. Same as HUD-1.
|
| Settlement Costs |
Money paid by borrowers and sellers to effect the
closing of a mortgage loan. This normally includes an origination fee,
discount points, title insurance, survey, attorney's fee, and such
prepaid items as taxes and insurance escrow payments.
|
| Sheriff's Deed |
Deed given by court order in connection with the sale
of property to satisfy a judgment or tax sale.
|
| SIMPLE INTEREST |
Interest computed on the unpaid principal balance of a loan, as opposed
to compounded interest.
|
| SINGLE FAMILY RESIDENCE (SFR)
|
A standard home with no common areas, no homeowners’ dues or sharing of
common walls. A home intended to be occupied by 1 family.
|
| Single-Width Manufactured Housing Unit |
Manufactured housing unit that
consists of a single section, which is usually 12 feet wide and from 40
to 64 feet long.
|
| SITE ANALYSIS
|
The study of a specific land parcel to determine its suitability for a
specific use. For example, if the study of the land parcel reveals it
should be used for industrial purposes, yet it’s currently being used
for residential purposes, then, upon review of the appraisal report, the
reviewer would want to take this information into consideration when
determining if the loan’s collateral is sound.
|
| SLAB |
A concrete floor used as a foundation in homes without a basement.
|
| SOCIAL SECURITY AWARD LETTER |
Documentation specifying the frequency and amount of Social Security
payments an individual is eligible to receive. Social Security Award
Letters are re-issued annually.
|
| SOLE OWNERSHIP |
Legal title in a single individual or an entity.
|
| SOLE PROPRIETORSHIP |
Ownership of a business, with no formal entity as a vehicle or
structure. The sole proprietorship reports its tax information on
Federal tax form 1040.
|
| Soft Costs |
Architectural, engineering, and legal fees, distinguished
from land and construction costs.
|
| Soft Market |
Any area that shows evidence of declining property values,
an over supply of property, or a marketing time of more than six (6)
months.
|
| Source of Funds |
Source of the buyers funds for the required cash
investment.
|
| Special Warranty Deed |
Deed containing a covenant whereby the grantor
agrees to protect the grantee against any claims arising during the
grantor's period of ownership.
|
| Spot Development |
Construction project that is free-standing on a
purchased lot and not associated with a specific development, tract or
subdivision.
|
| STANDARD COVERAGE POLICY
|
A title insurance policy used in several states, not having as broad a
coverage as the nationally recognized American Land Title Association
policies. See AMERICAN LAND TITLE ASSOCIATION.
|
| Standalone Condo (Site Condo)
|
A project built as a condominium project
with an HOA. The unit is not connected to other units at any point.
|
| Start Rate |
The initial interest rate charged on an adjustable-rate mortgage loan.
Also, see Note Rate.
|
| STATEMENT OF INFORMATION |
A confidential form filled out by buyer or seller to help a title
company determine if any liens are recorded against either. Very helpful
when people with common names are involved.
|
| Statement of Service |
DD Form 13, used to verify the military service
of an active duty veteran.
|
| Straw Buyer |
One who purchases land or property on behalf of another
and holds the title but passes control to the real purchaser. Also known
as a dummy purchase, a nominee, or a front.
|
| Streamlined Refinancing Documentation
|
Alternative documentation
procedure specifically designed for no cash-out refinance transactions,
which allows lenders to use substitute documentation to verify the
borrower's employment and income. It also relies on the lender's
warranty of the property value instead of requiring a new appraisal
report under certain circumstances.
|
| Strict Foreclosure |
Type of foreclosure proceeding used in some states,
in which title is invested directly in the mortgagee by court decree
without holding a foreclosure sale.
|
| Subchapter S
|
Provisions of the Internal Revenue Code under which
certain qualifying small business corporations may elect to eliminate
income tax at the corporate level, with the corporation's income taxed
directly to the shareholders.
|
| Subdivision |
Housing development that is created by dividing a tract of
land into individual lots for sale or lease.
|
| Sublease |
Lease executed by a lessee to a third person for a term no
longer than the remaining portion of the original lease.
|
| Subordinate Financing |
Any mortgage or other lien that has priority
lower than that of the first mortgage.
|
| Subordination |
Act of a party acknowledging, by written recorded
instrument, that a debt is inferior to the interest of another in the
same property. Subordination may apply not only to mortgages, but to
leases, real estate rights, and any other types of debt instruments.
|
| SUBMISSION |
This refers to a complete loan application package submitted for loan
approval.
|
| SUBORDINATE |
A lien taking a legal title position junior to another lien that
recorded later. For example, if a mortgage lien recorded in 1996, it can
subordinate to a lien recorded in 1999. Subordination may apply not only
to mortgages, but also to leases, real estate rights and any other type
of debt instruments.
|
| Subrogation |
Substitution of one person for another in reference to a
debt, claim, or right.
|
| SUBORDINATION AGREEMENT |
An agreement by which a lien holder agrees to accept a lien position
junior to that of a later-recorded lien. For example, when a lien holder
agrees to subordinate, a formal agreement must be drawn, signed and
recorded to make it a legal transaction. Subordinations may apply not
only to mortgages, but also to leases, real estate rights and any other
types of debt interests.
|
| SUBSTITUTION OF TRUSTEE |
A document that is recorded to change the trustee named in a deed of
trust.
|
| SUBURBAN |
The area around a city. Usually residential with some small businesses.
|
| Super Lien |
Lien imposed on a piece of property by the government that
supersedes all other liens on that property, including a lender's lien.
It is put on the property for violation of environmental and public
health and safety rules. Failure of a property owner to clean up its
hazardous or toxic wastes is an example of cause for a super lien
against that property.
|
| SUPPLEMENTAL TAXES
|
Additional taxes assessed by the city and/or county on property. These
taxes are in addition to any taxes impounded in an escrow account.
|
| SURETY BOND
|
Obligation of a guarantor to pay a second party upon default by a third
party in the performance it owes to the second party.
|
| Survey |
Measurement of land, prepared by a registered land surveyor,
showing the location of the land with reference to known points, its
dimensions, and the location and dimensions of any improvements.
|
| Sweat Equity |
| Contribution to the construction or rehabilitation of a
property in the form of labor or services rather than cash. |
