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| sale-leaseback |
| A technique in which a seller deeds property to a buyer for a consideration,
and the buyer simultaneously leases the property back to the seller.
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| Second home |
| A property occupied part-time by a person in addition to his or her primary
residence.
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| second mortgage |
| A mortgage that has a lien position subordinate to the first mortgage.
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| secondary mortgage market |
| An informal market where lenders and investors buy and sell existing mortgages.
Government-sponsored entities and private investors buy mortgages from lenders
who use the proceeds to make additional loans.
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| secured loan |
| A loan that is backed by collateral. If the borrower defaults, the lender can
sell the collateral to satisfy the debt.
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| security |
| The property that will be pledged as collateral for a loan. If the borrower
defaults, the lender can sell the collateral to satisfy the debt.
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| Security Interest |
| An interest a lender takes in the borrower's property to assure repayment of a
debt. If the borrower defaults, the lender can sell the collateral to satisfy
the debt.
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| seller take-back |
| An agreement in which the owner of a property provides financing, often in
combination with an assumable mortgage. See owner financing.
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| servicer |
| An organization that collects principal and interest payments from borrowers
and manages borrowers' tax and insurance escrow accounts. A mortgage banker is
often paid a fee to service mortgages that have been purchased by an investor
in the secondary mortgage market.
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| servicing |
| The collection of principal and interest payments from borrowers and management
of borrowers' tax and insurance escrow accounts. |
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| settlement |
| See closing.
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| settlement sheet |
| See HUD-1 settlement statement.
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| Co-signer |
| A person who signs a promissory note along with the borrower. A co-maker's
signature helps to assure that the loan will be repaid. The borrower and the
co-maker are jointly responsible for the repayment of the loan.
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| Single family residence |
| A residential structure designed to include one dwelling. |
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| special deposit account |
| An account that is established for rehabilitation mortgages to hold the funds
needed for the rehabilitation work so they can be disbursed from time to time
as particular portions of the work are completed.
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| Stand Alone |
| A Home Equity loan originated without obtaining a Bank of America first mortgage at
the same time. |
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| start rate |
| See initial interest rate. |
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| subdivision |
| A housing development that is created by dividing a tract of land into
individual lots for sale or lease.
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| subordinate financing |
| Any mortgage or other lien that has a priority that is lower than that of the
first mortgage. The subordinate loan has a claim to payment in a foreclosure
only after the first mortgage is paid.
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| subsidized second mortgage |
| An alternative financing option known as the Community SecondsŪ mortgage
for low- and moderate-income households. An investor purchases a first mortgage
that has a subsidized second mortgage behind it. The second mortgage may be
issued by a state, county, or local housing agency, foundation, or nonprofit
corporation. Payment on the second mortgage is often deferred and carries a
very low interest rate (or no interest rate). Part or all of the second
mortgage debt may be forgiven depending on how long the buyer remains in the
home.
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| 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. |
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| sweat equity |
| Contribution to the construction or rehabilitation of a property in the form of
labor or services performed personally by the owner.
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