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Sales Contract
A contract by which the buyer and seller agree to terms of sale.
Satisfaction Piece
The receipt for a mortgage that has been paid off.
Savings And Loan Association
A financial institution that makes loans. Savings and Loans were originally set up to make home loans, but during
the 1980s, deregulation allowed them to make commercial loans, as well.
Scire Facias
A court command to a borrower to show up at a hearing and show cause why a foreclosure should not be
authorized.
Second Deed Of Trust
A Deed of Trust that is in a subordinate position to another Deed of Trust securing the same parcel.
Second Lien
A mortgage that's lower in priority than say a first lien.
Second Mortgage
A mortgage made by a home buyer in addition to an existing first mortgage.
Secondary Market
The market in which investors buy loans from primary lenders, who deal directly with borrowers to originate loans.
Servicing
The process of administering a mortgage loan including collecting payments, maintaining insurance and
undertaking special measures such as workouts and foreclosures when they prove necessary.
Short Payoff
A workout procedure in which the lender accepts less than the full balance due on the loan as part of a deal in
which the borrower cooperates with the lender to obtain a quick sale. The lender skips foreclosure, which would
take time, cost money and expose the house to vandalism, further declines in market value, and marketing costs
for resale.
Simple Assumption
An assumption arrangement in which the seller conveys title to the property to the buyer and moves out while the
buyer moves in and makes payments on the old loan. The lender does not approve the buyer's credit and income,
so the deal may be called a no approval loan. However, the seller remains liable on the old loan under such
circumstances. Only loans without strong "due on sale" clauses are assumable without approval. This includes
DVA loans made before March 1, 1988, FHA loans made before December 15, 1989, and conventional loans made
before 1973.
Special Assessment
An assessment made against a property to pay for a public improvement.
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Stay
A court ordered bankruptcy.
Strict Foreclosure
A legal premise followed by some states that the lender owns the property and may simply evict the borrower for
nonpayment and gain full and complete title free of the borrower's claims by waiting a prescribed period of time
until the borrower's right to redeem ends. The lender gains the value of the land above what is owned on the loan.
Subdivision
A tract of land divided into lots or plots.
Subject To Clause
A clause in a deed that transfers title from a seller to a buyer in an assumption transaction, or in other paperwork
for the assumption transaction, in which the borrower refuses to accept legal liability to make payments, although
the buyer expects to do so. The lender's remedy for nonpayment is limited to foreclosure, and neither the lender
nor the seller can sue the defaulting buyer for missed payments on the loan balance.
Subordinate Clause
A clause in a mortgage that gives priority to a mortgage taken out at a later date.
Subrogation For Mortgage Insurers
The right of a mortgage insurance company to file a suit to recover from the borrowers sums it must pay out to a
lender as a result of the borrower's default on a loan.
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Summary Judgment
A legal procedure in which one side wins a lawsuit without a trial by showing that the case involves no material
fact issues, but only legal issues that can be decided by the judge. If the judge agrees, then one side wins by
Summary Judgment.
Survey
The process by which a parcel of land is measured and its area ascertained; also the blueprint showing the
measurements, boundaries, and area.
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