Mortgage Glossary

Settlement:

Another name for closing.

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.

Subordinate:

To place in a rank of lesser importance or to make one claim secondary to another.  Usually necessary if refinancing a first mortgage, while keeping a potential second mortgage in place.

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.