Mortgage glossary

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Satisfaction (Of A Mortgage): an instrument provided by the lender as evidence that the loan has been paid off and the lien is satisfied. Usually, it is up to the borrower to record the document.to remove the lien from the public record.

Second Mortgage: a mortgage with lower rights than a first mortgage on the same property. In the event of a foreclosure, the first mortgage must be satisfied before any payment can go to the second.

Secondary mortgage market: the market in which residential mortgages or mortgage securities are bought and sold.

Self Certified: generally when a borrower applies for a mortgage he or she will be asked to provide pay slips or company accounts to prove their income. If it is difficult or inconvenient for you to provide this evidence, you can choose to self-certify your income. This involves signing a declaration which states your income sources and amounts. Lenders will charge you higher rates than average and offer you a more limited range of mortgages if you choose to self-certifyyour income, in general it's not a good idea to self-certify just to avoid some paperwork. FFI mortgage glossary.

Seller Concessions: the seller may put a valuable asset into the purchase agreement for the buyer. An example of a seller concession is leaving all of the appliances in the home as an additional benefit to the buyer.

Seller Take Back: when the seller agrees to finance the property for the buyer which could also include assuming a mortgage contract.

Settlement: another name for closing .

Settlement Sheet: a document that lists all of the details of the sale of the home. A real estate agent will normally go over this document with the buyer and seller and explain the fees or costs including previous years property taxes, points, insurance, title insurance, commission fees, loan and financing fees and more. FFI mortgage glossary.

Settlement Statement: a statement which shows the seller's net proceeds and the buyer's net payment at closing. A standard form itemizing all of the monies paid at closing, including real estate commissions, loan fees, points and initial escrow amounts.

Special Forbearance: a loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

Statement of Service: this document shows your service record including when you entered the service, how long you served, and with what branch you served and is usually provided by the military unit you served with. FFI mortgage glossary.

Structural survey: the most wide ranging check of the structure of a property. This is carried out by professional surveyor and should uncover any defects or faults with the building.

Subordinate: to place in a rank of lesser importance or to make one claim secondary to another.

Subordinate Loan: any mortgage or lien that has a priority lower than the first mortgage.

Survey: a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.

Sweat equity: using labor to build or improve a property as part of the down payment.