SALES CONTRACT – a written agreement between buyer and seller, stating terms and conditions of a sale or exchange of property.
SATISFACTION OF MORTGAGE – the recorded instrument the lender provides, to evidence the full payment of a mortgage debt.
SEASONED MORTGAGE – a mortgage on which payments have been made regularly for a year or longer.
SECOND MORTGAGE (HOME EQUITY LOAN) – a mortgage loan that has rights which are subordinate to a first, or senior lien. ForTheBestRate.com works with lenders that offer both fixed rate second mortgages and home equity lines of credit.
SECURED PARTY – an entity party holding a security interest or lien, also called the mortgagee.
SECURITY INSTRUMENT – mortgage or deed of trust, evidencing the pledge of real estate as collateral for a loan.
SELF-EMPLOYMENT INCOME – the net earnings from your business or profession, determined by subtracting business expenses from gross tax return reported income. For lending documentation purposes, if you didn’t pay taxes on it, you didn’t earn it. Stated income loans and no documentation mortgages are popular choices to for self employed borrowers.
SELLER CONTRIBUTIONS – payment by the seller or any other interested party of some or all of the purchaser’s usual closing costs. Investors and pmi insurers sometimes limit the amount of seller contribution 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/lender and insurer restrictions.
SENIOR MORTGAGE (LIEN) – a first mortgage or deed of trust.
SETTLEMENT COSTS – money paid by borrower (and seller if a purchase transaction) to effect the closing of a mortgage loan, including payments for title insurance, survey, attorney fees, and such prepaid items as taxes and insurance escrow.
SITE DEVELOPMENT – all improvements made to a site, such as clearing, grading and the installation of public utilities, before the actual construction of a building.
SITE VALUE – the value of land without improvements, as if vacant.
SPECIAL ASSESSMENT DISTRICT – a governmental subdivision with the power to tax and improve property within its jurisdiction. Also called special improvement district.
SPOT LOANS- single family residential real estate mortgage loans solicited on an individual basis, rather than through Realtor referrals, or otherwise.
SUBCONTRACTOR – a person or company contracted to perform work for a developer or general contractor.
SUBDIVISION – improved or unimproved land divided into a number of parcels for sale, lease, financing or development.
SUBORDINATION – the act of a party acknowledging, by a written record, that a debt is inferior to the interest of another in the same property. Subordination may also apply not only to mortgages but to leases, real estate rights and any other types of debt instruments.
SURETY BOND – written evidence of a third party, called the surety, that will be primarily liable for a debt in the case of default.
SURVEY – a measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its’ dimensions and the location and dimensions of any improvements.