Glossary of Terms - S


Sales Agreement
See "agreement of sale" in this Glossary.

Satisfaction of Mortgage
Document issued by mortgagee when the mortgage is paid off. It must be recorded in the courthouse.

Secondary Financing
A loan secured by a mortgage or trust deed, which lien is junior to another mortgage or trust deed.

Secondary Market
The buying and selling of mortgage notes between sophisticated investors such as pension funds, commercial banks, savings and loans and wall street firms.

Secondary Market Investor

An entity, such as FNMA or FHLMC, that buys mortgage loans for investment or sells them again to another secondary market investor. Secondary market investors do not service loans and do not collect payments from borrowers. (See "Federal National Mortgage Association" and "Federal Home Loan Mortgage Corporation" in this Glossary)

Real or personal property pledged by a borrower as additional protection for the lender's interest.

Seller's Broker
Real Estate Agent who accepts the seller as a client, is legally obligated to abide by a set of fiduciary duties and is required to put the seller's interests above all other's.

Septic Tank
An underground tank in which sewage from the house is reduced to liquid by bacterial action and drained off into a drain field.

Set Back Ordinance
Regulates the distance from the lot line to the point where improvements may be constructed. Typically set forth in a zoning and/or subdivision and land development ordinance of a municipality in which real estate is located.

See "closing" in this Glossary .

Settlement Cost, a HUD Guide
This booklet gives an overview of the lending process and is required by HUD. It is provided to consumers after the loan application is completed. (See "HUD-1" in this Glossary)

Settlement Statement
A statement prepared by broker, escrow or lender giving a complete breakdown of the cost associated with a real estate transaction.

Sheriff's Deed
A deed given at the sheriff's sale in foreclosure of a mortgage.

Single Family Detached Home
A residential home that is not attached physically to another home.

Specifial Assessments
A special tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, street lights, 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" in this Glossary ).

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.

Standard Uniform Application
An application developed by FNMA and FHLMC that is widely used in the mortgage industry.

State and Local Housing Programs
Unique housing finance programs to assist first time home buyers and low to moderate housing groups. Each state and local group has different sets of criteria.

Statutory Lien
An involuntary lien, includes tax liens, judgment liens, mechanics' liens, etc.

Map or plat made by a licensed surveyor who measures land and charts its boundaries, improvements, and relationship to the property surrounding it. A survey is often required by the lender to assure that a building is actually sited on the land according to its legal description.

All rights of a joint tenant passes to the surviving joint tenant(s).

Sweat Equity
Equity created by the labor of the purchaser or borrower that increases the value of the property.



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