Glossary of foreclosure terms: S

sale date: Day for which a foreclosure sale is scheduled.

sale/leaseback: Arrangement by which a property owner sells the property to someone else, then rents it back. Common in commercial transactions, but rare and tricky for small residential properties such as individual homes.

secondary liability: Party that must fulfill an obligation if the holder of primary liability fails to do so. Relevant in the area of assumable and subject-to loans.

secured debt: Loan in which the lender can take possession of the borrower's property if the borrower fails to fulfill the loan's terms.

security: Property that will be transferred from the borrower to the lender if the borrower fails to fulfill the terms of a loan.

seller's proceeds sheet: Document that shows the amount of money a seller will receive from the sale of property, assuming a certain sale price and set of expenses.

seller-carryback loan: Loan where the party selling a property is also lending its buyer money for the purchase.

selling agent: Real estate agent who assists a property buyer. Buyer's agent. See also listing agent.

senior lienholder: Lender whose loan has the first priority for a piece of property. See also junior lienholder.

Servicemembers Civil Relief Act (SCRA): Federal law that protects members of the military from lawsuits as long as they're on active duty.

sheriff's sale: Foreclosure sale for judicial foreclosures, run by the county sheriff. See also trustee's sale.

short sale: Sale of real estate that doesn't bring in enough money to pay off its encumbrances. Such a sale can proceed with the permission of the creditors that would receive a short payoff.

Soldiers' and Sailors' Civil Relief Act (SSCRA): Former name of the Servicemembers Civil Relief Act.

stay of foreclosure: A court order that stops a foreclosure from proceeding. See also automatic stay.

straight note: See interest-only loan.

"subject to" clause: Part of a loan contract on loans that are transferred from one borrower to another. It states that the original borrower remains fully liable for the loan.

subordination clause: Part of a loan contract that allows the loan to become junior to a later loan.

subprime: Borrower whose credit history, income, or other factors do not allow for qualification of a prime loan. Often used to describe the loans that result as well.

substitution of liability form: Legaldocument that allows an assumable loan to be transferred to a new borrower, when signed by the lender and both parties.