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Real Estate Terms starting with (S)

The Following are real estate terms and topics: Starting With the Letter (S)

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Are you confused and overwhelmed by the extensive terms and words used in real estate? Every person working in real estate or planning to buy or sell real estate can benefit from learning some of the terms….

Real Estate Terms S

Real Estate Terms S

Sale-leaseback
An arrangement whereby a lessor purchases equipment from the company owning and using it. The lessor then becomes the owner and leases it back to the original owner who continues to use the equipment.

Second mortgage
A second mortgage typically refers to a secured loan (or mortgage) that is subordinate to another loan against the same property.

Secondary mortgage market
The buying and selling of first mortgages or trust deeds by banks, insurance companies, government agencies, and other mortgagees. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value (par) or above, but are usually sold at a discount.

Secured loan
A loan for which an item, such as a home, is pledged as “security” against the line of credit. In case of default the item may be sold to pay the debt.

Security
The property that will be pledged as collateral for a loan.

Seller take-back
An arrangement in which the seller becomes the mortgagee on a home purchase.

Servicer
An organization that collects principal and interest payments from borrowers and manages borrowers’ escrow accounts.

Servicing
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

Settlement
Settlement is the process whereby securities or interests in securities are delivered, usually against payment, to fulfill contractual obligations, such as those arising under securities trades.

Settlement sheet
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 amounts for escrows.

Special deposit account
Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.

Standard payment calculation
The method used to determine the monthly payment required to repay the remaining balance of a mortgage in substantially equal installments over the remaining term of the mortgage at the current interest rate.

Step-rate mortgage
Loan which allows a gradual increase in the interest rate during the initial years of the loan. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.

Subdivision
a division into smaller pieces of something that has already been divided; to separate something; such a piece that has been divided; a parcel of land has been divided into lots; a group of houses created by the same builder or in the same general area.

Subordinate financing
A second mortgage on the property which is not paid off when a new loan is taken out. The second mortgage lender must allow subordination of the second to the new first mortgage.

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.

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
a term used to describe the contribution made to a project by people who contribute their time and effort. It can be contrasted with financial equity which is the money contributed towards the project.

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