SALE PRICE
The price paid for a listing or property.
SATISFACTION OF MORTGAGE
The document issued by the lender verifying full payment of a mortgage debt.
SECOND HOME (VACATION HOME, WEEKEND HOME)
A residence other than the borrower's primary residence which the borrower intends to occupy for a portion of each year. The residence must be occupiable year-round.
SECOND MORTGAGE
A mortgage that has rights that are subordinate to the rights of the first mortgage holder. Home equity loans are often referred to as second mortgages because the borrower typically is still paying off their home mortgage; if the home mortgage is paid off, the home equity loan is then considered to be a first mortgage.
SECONDARY MORTGAGE MARKET
A market where existing mortgages are bought and sold. It contrasts with the primary mortgage market, where mortgages are originated.
SECTION 203(K) LOAN PROGRAM
HUD's primary program for the rehabilitation and repair of single-family properties. A 203(k) loan is a first mortgage that covers the costs of rehabilitation and purchase or refinance of an eligible property. The goals of the Section 203(k) loan program are community and neighborhood revitalization and expanded opportunities for homeownership for low- and moderate-income families.
SECURED LOAN
A loan that is backed by collateral.
SECURITY
The property that will be pledged as collateral for a loan.
SECURITY INSTRUMENT
Mortgage or Deed of Trust evidencing the pledge of real estate as collateral for the loan.
SECURITY INTEREST
The interest of a creditor in the security acting as collateral for an investment.
SELLER (OWNER)
The owner of a property who has signed a listing agreement or a potential listing agreement.
SELLER CARRY-BACK
An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.
SELLER CONTRIBUTIONS
Payment by the seller or any other interested party of some or all of the purchaser's usual closing costs. Investors and insurers sometimes limit the amount of seller contributions and require lenders to adjust the property's value if contributions exceed limitations. Undisclosed seller contributions (such as decorating allowances, appliances, or payment of moving expenses) are made to borrowers outside of closing and are also subject to investor and insurer restrictions.
SERVICER
An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
SERVICING
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
settlement statement
SERVICING RELEASED
A stipulation in the agreement for the sale of mortgages in which the seller is not responsible for loan administration.
SETTLEMENT COSTS
Money paid by borrowers and sellers to effect the closing of a mortgage loan, including payments for title insurance, survey, attorney fees, and such prepaid items as escrow for taxes and insurance.
SETTLEMENT SERVICES
Services provided by the lender at the closing of a loan.
SETTLEMENT SHEET
The computation of costs payable at closing that determines the seller's net proceeds and the buyer's net payment.
SETTLEMENT STATEMENT (HUD-1)
A form used at closing that gives an account of the funds received and paid at the closing, including the escrow deposits for taxes, hazard insurance, and mortgage insurance.
SEVERALTY
An estate held by a person in his own right, without being joined by another person.
SHOWING
When a listing is shown to prospective buyers or the buyer’s agent (preview).
SHERIFF’S SALE
The public auction at which the property being foreclosed is offered for sale.
SHORT SALE
A type of voluntary liquidation (also referred to as a pre‐foreclosure sale or short payoff) where a borrower and the lender who holds the mortgage on the property agree to sell the property at fair market value, but for less than the current outstanding debt (including any missing payments, late fees,
penalties, and advances for taxes and the like).
SITE VALUE
The value of land without improvements, as if vacant.
SPECIAL FLOOD HAZARD AREA (SFHA)
An area having special flood, mudslide and/or flood related erosion hazards as shown on Federal Emergency Management Agency (FEMA) floodplain maps.
SPECIAL WARRANTY DEED
A deed that conveys ownership, but only warrants the title to the property for the time period the grantor has had title.
STATE ASSOCIATION OF REALTORS®
An association of Realtors® in a specific state.
STRAW BUYER
An individual who buys property in another's behalf to conceal the identity of the real buyer.
SUBDIVISION
A housing development that is created by dividing a tract of land into individual lots for sale or lease.
SUBORDINATION
An agreement in which the existing lien will take an inferior position to a new or junior lien.
SUBORDINATE FINANCING
Any mortgage or other lien that has a priority that is lower than that of the first mortgage.
SUPRA®
An electronic lockbox (ELB) that holds keys to a property.
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.
