Mortgage and Loan Glossary (S)
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safe harbor
A set of rules and regulations that will guarantee compliance with
the law if followed.
safe rate
An interest rate provided by low-risk investments such as high grade
bonds or secured first mortgages.
sale-leaseback
A technique in which a seller deeds property to a buyer, who simultaneously
leases the property back to the seller.
sales contract
A written contract by which the purchaser and seller agree to all terms
of the sale. Same as an agreement of sale.
salesperson
A person who is licensed to make real estate transactions while under
the supervision of a broker licensed by the state.
S&L
Savings and Loan Association.
second mortgage
A loan that has a lien position subordinate to the first mortgage.
secondary mortgage market
The buying and selling of existing mortgages. Primarily residential
first mortgages.
section 1031
A provision of the Internal Revenue Code that allows owners of investment
property to exchange a property for other like-kind property, and
to defer any capital gains into the acquired property. Also called
a 1031 Exchange or a Starker Exchange.
secured loan
A loan that is backed by collateral.
security
Property that is pledged as collateral for a debt.
security interest
The lender's right to take property that has been offered as security.
seller take-back
An arrangement in which the owner of a property provides financing.
servicer
A company that collects principal and interest payments from borrowers
and manages borrowers' escrow accounts. The servicer may or may not
be the original lender.
settlement
See closing.
settlement sheet
See HUD-1 settlement statement.
sole ownership
Ownership of property by a single person or entity.
standard payment calculation
The process used to determine the monthly payment required to repay
the remaining principal balance of a loan in fairly equal installments,
over the remaining term of the loan at the current interest rate.
step mortgage
A type of adjustable-rate mortgage (ARM) that allows for the interest
rate to increase according to a specified schedule. At the end of
the specified period, the rate and payments will remain constant
for the remainder of the loan. Sometimes called a step-rate mortgage.
subdivision
A housing development that is created by dividing a large parcel of
land into many individual lots for sale.
subordinate financing
Any mortgage or other lien that has a lower priority than that of the
first mortgage.
survey
A detailed drawing showing the precise legal boundaries of a property,
the location of improvements, easements, rights of way and other
physical features.
sweat equity
Contribution to the construction of a property in the form of labor
or services, instead of cash.