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Terms: 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 Take-Back
An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.

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

Settlement
A meeting at which all documents are signed and all expenses are paid to transfer ownership of property.

Settlement Sheet
A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points, and initial escrow amounts. Each item on the statement is represented by a separate number within a standardized numbering system. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. The blank form for the statement is published by the Department of Housing and Urban Development (HUD).

Simple Interest
Interest which is computed only on the principle balance.

Single Family Residence
A residential structure designed to include one dwelling.

Special Deposit Account
An account that is established for rehabilitation mortgages to hold the funds needed for the rehabilitation work so they can be disbursed from time to time as particular portions of the work are completed.

Start Rate
The starting interest rate for an adjustable rate mortgage (ARM) loan or variable rate home equity line of credit. At the end of the effective period for the initial rate, the interest rate adjusts periodically during the life of the loan based on changes in a specified financial index.

Subdivision
A housing development that is created by dividing a tract of land into individual lots for sale or lease.

Subordinate Financing
Any mortgage or other lien that has a priority that is lower than that of the first mortgage. The subordinate loan has a claim to payment in a foreclosure only after the first mortgage is paid.

Subsidized Second Mortgage
An alternative financing option known as the Community Seconds® mortgage for low and moderate income households. An investor purchases a first mortgage that has a subsidized second mortgage behind it. The second mortgage may be issued by a state, county, or local housing agency, foundation, or nonprofit corporation. Payment on the second mortgage is often deferred and carries a very low interest rate (or no interest rate). Part or all of the second mortgage debt may be forgiven depending on how long the buyer remains in the home.

Survey
A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

Sweat Equity
Contribution to the construction or rehabilitation of a property in the form of labor or services performed personally by the owner.