The Glossary Mortgage Terminology

Del Financial's Glossary consists of the more commonly used definitions, meanings, and descriptions used within the mortgage and real estate industry. As always, if you have any questions, please call us at (800) 469-5861.

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Sale Leaseback
a situation where a property is sold and the buyer simultaneously leases the property back to the seller.
Second Mortgage
an additional mortgage on property. In case of a default the first mortgage must be paid before the second mortgage. Second loans are more risky for the lender and usually carry a higher interest rate.
Secured Loan
a loan backed by collateral such as property.
Security
the property that will be pledged as collateral for a loan.
Servicer
a business that collects mortgage payments from borrowers and manages the borrower's escrow accounts.
Servicing
the collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
Settlement
another name for closing.
Settlement Statement
a document required by the Real Estate Settlement Procedures Act (RESPA). It is an itemized statement of services and charges relating to the closing of a property transfer. The buyer has the right to examine the settlement statement 1 day before the closing. This is called the HUD 1 Settlement Statement.
Subordinate
to place in a rank of lesser importance or to make one claim secondary to another.
Survey
a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc. Surveys are conducted by licensed surveyors and are normally required by the lender in order to confirm that the property boundaries and features such as buildings, and easements are correctly described in the legal description of the property.
Sweat Equity
using labor to build or improve a property as part of the down payment.
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