Sales Contract
A written document in which a purchaser agrees to buy property under certain given
conditions, and the seller agrees to sell under certain given conditions. Also
known as an 'Agreement of Sale.'
Second Mortgage
A mortgage which ranks after a first mortgage in priority. If the loan is not
repaid, the first mortgage holder has first right to the property; the second
mortgage holder receives anything remaining.
Secondary Mortgage Market
The market where lenders and investors buy and sell existing mortgages or mortgage-backed
securities, thereby providing greater availability of funds for additional mortgage
lending.
Seller Carry Back
An agreement in which the owner of a property provides financing, often in combination
with an assumed mortgage.
Separate Maintenance
An order by the court to send money to an individual on a monthly basis for a
specific period of time.
Servicing (or Loan Servicing)
Supervising and administering a loan after it has been made. This involves such
things as collecting the payments, keeping accounting records, computing interest
and principal, etc.
Settlement Statement
A statement prepared by broker, escrow, or lender, giving a complete breakdown
of costs involved in a real estate sale. A separate statement is prepared for
the seller and buyer.
Signer
A person who signs a promissory note along with the borrower. A co-maker's signature
guarantees that the loan will be repaid, because the borrower and the co-maker
are equally responsible for the repayment.
Subordinate Financing
Any mortgage or other lien that has a lien position behind that of the first mortgage.
Survey
A map executed by a licensed surveyor, which sets down precisely the boundaries
of a given property as well as improvements, references to known landmarks, and
the property's notable features.