Real Estate Glossary

S

Satisfaction of Mortgage
A recorded instrument granted by a lender to evidence full payment for a mortgage debt.

Second Mortgage
A mortgage that extends rights to the lender which are subordinate or inferior to the rights extended to the first mortgage holder.

Secondary Mortgage Market
A market system in which investors purchase and sell existing mortgages and mortgage-backed securities and which facilitates capital formation for funding of mortgages.

Security
Real or personal property pledged by a borrower as additional protection for the lender's interest.

Seller's Broker
Agent who takes the seller as a client, is legally obligated to a set of fiduciary duties, and is required to put the seller's interests above all others.

Settlement Cost Guide
This booklet gives an overview of the lending process and is required by HUD. It is provided to consumers after the loan application is completed.

Settlement Statement
A statement prepared by broker, escrow, or lender, giving a complete breakdown of the costs involved in a real estate transaction.

Servicing
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

Specific Performance
Lawsuit requesting that a contract be exactly carried out, usually asking that the seller be ordered to convey the property as previously agreed.

Stated Income
Some loan products require only that applicants "state" the source of their income without supporting documentation such as tax returns or paystubs.

Subject Property
The real property under discussion or appraisal.

Survey
The procedure used to measure and describe a specific tract of real property for the purpose of determining exact boundaries and the area contained therein.

Subordination
The act of a party acknowledging, by written recorded instrument, that a mortgage debt or other interest is inferior to the interest of another in the same property.