Sales Agreement or Sales Contract:
See Agreement of Sale.
Savings and Loan: Depository institutions
that specialize in originating, servicing and holding
mortgage loans primarily on owner occupied residential
property.
Second Mortgage Market: The market
where banks, savings and loans and mortgage bankers
can sell mortgages to investors like Fannie Mae or
Freddie Mac.
Second Home: Also known as a vacation
home. This home is different from an investment property
as it is not rented, but used occasionally by the
owners.
Second Mortgage: A subordinated lien,
created by a mortgage loan, over the amount of a first
mortgage. Second mortgages generally carry a higher
rate than a first mortgage since they represent a
higher risk for an investor.
Section 8 Housing: Privately owned
housing, such as an apartment complex, which receives
government subsidies for renting to low income people.
This allows people to pay rent based on what the can
afford.
Section 1031: The section of the
IRS that deal with tax free exchanges of certain types
of property.
Security: Property that serves as
collateral for a debt.
Servicing: The act of billing, collecting
payment, filing reports, managing impound accounts
and handling defaults on a mortgage.
Settlement Cost (HUD Guide): A booklet
that provides an overview of the lending process and
is required to be given to consumers after the loan
application is completed.
Settlement Statement: See HUD 1.
Special Assessment: A special tax
imposed on property, individual lots or all property
in the neighborhood to pay for improvements - street
lights, sidewalks, etc.
Special Warranty Deed: The grantor
does not warrant against title defects arising from
conditions that existed before he/she owned the property.
The seller warrants that he/she has done nothing to
impair title.
Shared Appreciation Mortgage: A residential
loan with a fixed interest rate that is below market,
with the lender entitled to a specified share of appreciation
of the property over an agreed upon time interval.
Sheriff's Deed: A deed given as a
result of a sherrif's sale in the foreclosure of the
property.
Single Family Housing (SFR): A type
of structure designed to house one family.
Spec House: A single family home
built buy a builder in anticipation of finding a buyer.
Specific Performance: A legal action
in which the court requires a party to a contract
to perform the terms of the contract.
Standard Uniform Loan Application (From 1003):
Referred to as a "ten-oh-three" form. This
is a standard application form that is used very widely
in the mortgage industry.
Subdivision: A tract of land that
is divided into lots for the purpose of building homes.
Subordination: A loan that is second
or lower in priority to another mortgage.
Subject To (Purchasing Subject to a Mortgage):
The buyer agrees to make payments on the existing
mortgage, without notifying the lender. The seller
remains liable for making payments on the loan if
the buyer does not make the mortgage payment. The
buyer is not personally liable for mortgage payments,
but must make payments to keep the property. See also
Assumable Mortgage
Survey: Map made by a surveyor who
measure and charts land and its boundaries and relationship
to the property surrounding it.
Sweat Equity: Value added to a property
due to improvements made by the owner.
