We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

# A B C D E F G H I J K L M N O P Q R S T U V W XYZ

S Terms

Sales Concessions and Financing: 1) Owner-financed transactions. 2) Chattel included in the sale. 3) Points or fees paid to the lender by the developer, not by the borrower.

 

Sales Contract: A written agreement between competent parties stating all terms and conditions of a sale.

 

Satisfaction of Mortgage: The legal document, usually recorded, that proves that the borrower completely paid off the mortgage. It is given to the borrower by the lender.

 

Scheduled Items: A Federal Savings and Loan Insurance Corporation (FSLIC) regulatory category in which every insured lending institution is required to include the total amount of its slow loans, real estate owned as a result of foreclosure, real estate sold on contract and all non-conforming loans.

 

Seasoned Loan: A loan that has been closed and on a lender's books for at least 12 months.

 

Secondary Financing: Loans secured by the property, but subordinated to the first mortgage.

 

Secondary Market: An informal market where existing mortgages are bought and sold. It is the traditional aftermarket for mortgage loans that brings together lenders that sell mortgages with lenders, investors and agencies that buy mortgages. Also called "secondary mortgage market," it should not be confused with a second mortgage.

 

Secured Party: Usually the lender who holds the security interest in, or lien on, a property. Also known as "mortgagee." (See Security Interest, Lien.)

 

Security: The collateral or property given, deposited or pledged to ensure the fulfillment of an obligation or payment of a debt.

 

Security Instrument: A recorded legal document given by the borrower to the lender. It pledges the title of the property as insurance to the lender for the full payment of the mortgage. Mortgages, deeds of trust and deeds to secure debt are considered security instruments. (See Mortgage, Deed of Trust.) The security instrument contains the description of the property.

 

Security Interest: The legal right or share that the mortgage lender holds to the property.

 

Servicing: All the management and operational procedures that the mortgage company handles for the life of the mortgage, up through foreclosure if necessary, including: collecting the mortgage payments, ensuring that the taxes and insurance charges are paid promptly, and sending an annual report on the mortgage and the escrow accounts. (See Escrow Account.)

 

Servicing Costs: The expenses incurred by the seller/servicer in servicing loans, including money spent on staff, computer facilities, foreclosure costs, etc.

 

Servicing Fee: The monthly fee retained by the loan servicer according to the terms of a servicing agreement.

 

Servicing Released: A loan sale in which the original lender relinquishes loan servicing responsibilities to the institution or investor purchasing the loan.

 

Servicing Retained: A loan sale in which the original lender's servicing department continues to service the loan after the sale to a secondary institution or investor.

 

Settlement Statement: The complete breakdown of costs involved in the real estate transaction for both the seller and buyer.

 

Sheriff’s Sale: A legally instituted sale of a property in foreclosure that is presided over by a sheriff appointed by the court.

 

Sold Loan: A mortgage loan that has been sold to another institution or investor. Sold loans may continue to be serviced by the seller.

 

Special Assessment: A claim against a property which arises when a major improvement is made by the local/state government. For example, a sewer line, street paving or street lighting. The total cost is distributed among the benefited properties. Failure to pay any installment of a special assessment may result in foreclosure by the political entity which is responsible for the assessment.

 

Standby Commitment: A commitment to purchase a loan or loans with specified terms, both parties understanding that delivery is not guaranteed. The commitment is issued for a fee, with willingness to fund in the event that a permanent loan is not obtained. Such commitments are typically used to enable the borrower to obtain construction financing at a lower cost on the assumption that permanent financing of the project will be available on more favorable terms when the improvements are complete and the project generates income.

 

Standard Mortgage: A type of mortgage loan that carries a fixed interest rate and has fixed monthly payments over the life of the loan. Traditionally, the most common type of conventional mortgage loan.

 

Standard Renewal: An insurance renewal option. The renewal rate is based on the outstanding loan balance at the time of each renewal.

 

Statute of Limitations: A law which limits the bringing of a court action (civil or criminal) to within a specified period of time or else it is barred.

 

Statutory Redemption Period: A time period during which a mortgage, land contract, deed of trust, etc., can be redeemed. The time period is usually set by statute.

 

Statutory Reporting: An accounting method used by insurance companies to report their financial information to regulators.

 

Statutory Right of Redemption: In certain states, a defaulted borrower's right to redeem his property for a specified period of time after a foreclosure sale by paying off the debt(s) in full. Also called "statutory redemption."

 

Stay: The ceasing of a judicial proceeding.

 

Straight Term Mortgage: A mortgage loan granted for a fixed term of years, with the entire loan becoming due and payable at the end of that time.

 

Strict Foreclosure: A legal proceeding in which the lending institution brings court action against the borrower. The court sets a date by which the borrower must redeem his debt in full or title will pass automatically to the lender without public sale.

 

Subject Property: The property that is the subject of an appraisal.

 

Subordinate Lien: A lien by which an encumbrance is made subject to or junior to the original lien.

 

Subrogation: The substitution of one person for another, so that the former may exercise certain rights or claims of the latter.

 

Summons: A writ requiring the sheriff or other property officer to notify the person named in an action that he or she is required to appear on a specific day named to answer the allegations of a petition or a complaint.

 

Survey : A 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.