Sales Agreement
Contract signed by buyer and seller stating the
terms and conditions under which a property will
be sold.
Second Mortgage
A loan that is junior to a primary or first
mortgage and often has a higher interest rate and
a shorter term.
Second/Vacation Home
A second home/vacation home that is occupied by
the borrower for some portion of the year for
his/her exclusive use and enjoyment but which is
suitable for year round occupancy. It cannot be
subject to a mandatory rental pool and the
borrower does not intend to use the property for
income producing purposes
Secondary Market
A market in which investors like GNMA, FHLMC, FNMA
and private organizations buy large numbers of
mortgages from the primary lenders and either hold
them in a portfolio or package them for sale to
others. By selling loans in the secondary market,
lenders obtain the funds needed to make new loans.
Self-employed Borrower
A borrower whose income is derived from a business
in which he/she has an ownership interest of 25%
or more.
Servicing
The responsibility of collecting monthly mortgage
payments and properly crediting them to the
principal, interest, taxes and insurance, as well
as keeping the borrower informed of any changes in
the status of the loan.
Settlement (or Closing)
The settlement or closing is the conclusion of
your real estate transaction. It includes the
delivery of your security instrument, signing of
your legal documents and the disbursement of the
funds necessary to the sale of your home or loan
transaction (refinance).
Settlement Costs
Also known as closing costs, these costs are for
services that must be performed before your loan
can be initiated. Examples include title fees,
recording fees, appraisal fee, credit report fee,
pest inspection, attorney's fees, taxes, and
surveying fees.
Shared Appreciation Mortgage (SAM)
A loan in which a lender offers a below market
interest rate in exchange for a portion of the
future appreciation of the property.
Special Assessments
A special tax imposed on property, individual lots
or all property in the immediate area, for road
construction, sidewalks, sewers, streetlights,
etc.
Special Lien
A lien that binds a specified piece of property,
unlike a general lien, which is levied against all
one's assets. It creates a right to retain
something of value belonging to another person as
compensation for labor, material, or money
expended in that person's behalf. In some
localities it is called "particular"
lien or "specific" lien. See Lien
Special Warranty Deed
A deed in which the grantor conveys title to the
grantee and agrees to protect the grantee against
title defects or claims asserted by the grantor
and those persons whose right to assert a claim
against the title arose during the period the
grantor held title to the property. In a special
warranty deed the grantor guarantees to the
grantee that he has done nothing during the time
he held title to the property which has, or which
might in the future, impair the grantee's title.
Subdivision
An area of land that is platted and sub-divided
into individual lots.
Survey
A physical measurement of property done by a
registered professional showing the boundaries,
dimensions and location of any buildings as well
as easements, rights of way, roads, etc.
Sweat Equity
Value added to a property in the form of labor or
services of the owner rather than cash.
