Shared Equity Mortgage Sem


Definition of "Shared equity mortgage (SEM)"

Bank receives equity participation in the house as a result of lending the homeowner money. When the house is sold, the bank will receive its proportionate share of the proceeds. In such an arrangement, the bank sometimes pays the down payment for the house because of the homeowner's poor financial condition.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Exclusive Right To Sell

The Exclusive Right to Sell Listing is a type of Listing where the Listing Broker/Agent wins his/her commission even if he/she wasn’t directly r ...

Assessment District

Any geographic taxing division where the legally chosen representatives are charged with the responsibility of assessing taxable property and collecti ...

Net Loss

The excess of total expenses over rental revenue for a real estate business. ...

Insured Mortgage

Same as term insured loan: A loan indemnified against default by the borrower. Such loans may be a mortgage loan insured by a standard mortgage insura ...

Operating Lease

Regular rental of property between the lessee and lessor for a fee. An operating lease does not satisfy the criteria for a capital lease. An example i ...

Protective Covenants

An agreement restricting specified financial transactions. For example, a covenant may be agreed to in a loan agreement that a person may not borro ...

Popular Real Estate FAQ

Besides Making My Monthly Mortgage Payment, How Can I Build Equity Into My House?

When making your monthly mortgage payment, try to send a little bit more. This will go directly to the principal of the loan rather than the interest ...

What Is An Appraised Value?

An opinion of a properties fair market value, based on an appraisers inspection and analysis of the property. ...

What Is Accession?

The right of a property owner to have and enjoy all of the advantages of property ownership including air right, mineral rights, riparian rights, and ...

What Is PITI And What Does It Stand For?

PITI is the total monthly payment you make on a house-Principal, Interest, Taxes, and Insurance. ...

What Is A Broker?

An agent who is authorized to open and run his/her own agency. All real estate offices have one principal broker. ...

What Is Earnest Money?

Earnest money is a deposit you make when you make an offer on a house. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Down Payment: Everything You Wanted to Know Luxury Real Estate Forecast Furnished Rental Tips for Real Estate Investors How to Buy a House Quickly What is a Credit Score and How Does it Impact Real Estate?

FAQ

What is title insurance? What does the Real Estate Settlement Procedures Act (RESPA) require? What is a APR Loan? What is the difference between being prequalified and preapproved for a loan? What is an appreciation?