Sale-Leaseback
Sometimes a real estate transaction is completed before the seller is ready to move out and/or the buyer is ready to move in. In such cases the seller deeds the property to the buyer, who then simultaneously leases the property back to the seller for a fixed period of time. |
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Satisfaction Of Mortgage
Also called a "release deed", the mortgage satisfaction is the official legal instrument provided by the lender to the borrower that acknowledges the final and full repayment of the loan. It formally cancels the lien on the property previously represented by the mortgage or deed of trust. |
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Second Mortgage
A homeowner who is already making payments on a primary mortgage may be able to get money for some immediate or unforeseen expense by acquiring an additional mortgage. However, such loan instruments represent considerable risk to the lender, for they are automatically assigned a lien position that is subordinate to the first mortgage, and are thus often difficult to obtain. |
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Secondary Mortgage Market
Mortgages are created in what is commonly referred to as the primary mortgage market, and then may be packaged into securities and bonds that are traded within what's called the secondary mortgage market. Banks, lenders and investment firms bundle existing loans into securities called collateralized mortgage obligations (CMOs), thus providing greater liquidity for the cumulative value represented by the asset pool while at the same time reducing the risk associated with holding individual mortgages. |
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Servicing
Mortgage lenders must perform routine supervisory and administrative tasks to an existing loan such as the oversight of accounting and bookkeeping records, regulation of insurance and tax requirements, billing and payment collection, and if necessary, foreclosure management. |
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Setback
Most residential properties are regulated by a setback ordinance, which specifies the distance from the property line, street, curb or other established boundary any structure or improvement must be situated. |
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Severalty Ownership
Severalty Ownership is simply another term for sole ownership (by a single individual). |
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Sheriff's Sale
A court of law may direct local authorities to seize and sell a property (after issuing notice to the public) in order to satisfy a judgment. |
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Special Assessment
Local governments may levy a special tax or legal charge against real estate in order to finance public improvements or communal infrastructure expansion. |
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Special Lien
Also called a "particular lien" or "specific lien", a special lien is levied against a specific asset, as opposed to a general lien, which is directed at all of an individual's property. It is most often utilized in legal disputes involving compensation for unpaid labor, material delivery or contractually binding monetary expenditures. |
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Special Warranty Deed
The grantor of a special warranty deed guarantees the integrity of the property title from any defects that may be found to have originated during his or her ownership of the property, but not from any such problems that may be discovered to have existed beforehand. |
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Subprime Loan
Borrowers who fail to qualify for prime rate loans may be offered a higher rate (usually 0.1% to 0.6% above the prime rate). Subprime borrowers have typically been turned down by traditional lenders due to poor or questionable credit histories, and thus are compelled to pay the higher costs (due to the higher risk these borrowers represent) charged by subprime loan product providers. |
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Survey
Usually required by lenders in order to insure that houses, buildings or other improvements are actually situated in accordance with a property's existing legal description, a survey (prepared by a licensed surveyor) is an exact, to-scale map charting the property's elevations, boundaries, and improvement locations in relation to adjacent tracts of land. |
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