Back to top Sale agreement A written contract signed by the buyer and the seller of a house stating the terms and conditions under which the property will be sold. A mortgage on property that has a lien position behind the first mortgage . The buying and selling of existing mortgages. Servicer An organization that collects monthly mortgage principal and interest payments from home owners and manages escrow accounts for paying taxes and homeowners' insurance premiums. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market .
Settlement See closing .
Subprime borrowers have either missed payments on a debt or have been late with payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may run into trouble or default. Bankrate Inc. All rights reserved.