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.
A mortgage that has a lien position subordinate to the
The buying and selling of existing mortgages.
A loan that is backed by collateral.
The property that will be pledged as collateral for a
An agreement in which the owner of a property provides
financing, often in combination with an assumable
mortgage. See owner
An organization that collects principal and interest
payments from borrowers and manages borrowers
escrow accounts. The servicer often services mortgages
that have been purchased by an investor in the secondary
The collection of mortgage payments from borrowers and
related responsibilities of a loan servicer.
See HUD-1 statement.
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.
The method used to determine the monthly payment required
to repay the remaining balance of a mortgage in
substantially equal installments over the remaining term
of the mortgage at the current interest rate.
A mortgage that allows for the interest rate to increase
according to a specified schedule (i.e., seven years),
resulting in increased payments as well. At the end of
the specified period, the rate and payments will remain
constant for the remainder of the loan.
A housing development that is created by dividing a tract
of land into individual lots for sale or lease.
Any mortgage or other lien that has a priority that is
lower than that of the first mortgage.
An alternative financing option known as the Community
Seconds® 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 of the debt may be forgiven
incrementally for each year the buyer remains in the
A drawing or map showing the precise legal boundaries of
a property, the location of improvements, easements,
rights of way, encroachments, and other physical
Contribution to the construction or rehabilitation of a
property in the form of labor or services rather than