Real Estate Glossary

sale and leaseback
A financial arrangement where the buyer purchases the property and the seller leases it from the new owner. The buyer gets a fixed return on his or her investment.
secondary mortgage market
A market for the purchasing and selling of mortgages in order to provide greater liquidity for mortgages. Also known as the secondary money market. The primary mortgage market is where the mortgage originates from.
secured loan
A loan that is backed by collateral.
Anything of value that is pledged in order to insure the repayment of a debt.
An organization tha tcollects principal and interest payment from borrowers. They will also manage a borrower's escrow account and service mortgages that have been purchased by an investor in the secondary market.
short sale
A property that is not totally paid off is sold for less than the total mortgage amount. The lender accepts the sale amount and forgives the outstanding balance. For example: a homeowner owes $100,000 on a property and sells it for $90,000. The bank accepts the $90,000 and sometimes (but not always) considers the debt fully satisfied.
subordinate financing
A mortgage or lien on real property that is of less importance than the primary mortgage. A secondary mortgage is an example.
sweat equity
When labor is counted in lieu of monetary investment as part of an effort to gain ownership of real property.