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mortgages

short sale

Short sale in real estate refers to a sale of a house when the sale price is less than the outstanding mortgage on the property. Short sales occur when the homeowner is in financial trouble and needs the home sold quickly. In order for a short sale to occur, the lending institution must agree to the short sale. Often, lenders agree not to hold the homeowner liable for any outstanding balance, and in some states, lenders are required to waive the outstanding balance.

straw man

Straw man is a third party that holds property in intermission for the sole purpose of transferring it to another. In property law, a straw man would be the person whom a grantor transfers land to for some reason; (sometimes known as a "front") for the sole purpose of concealing the true owner.

subprime mortgage

A subprime mortgage is a subprime loan used as a mortgage (to buy property, such as a house), that is made available to borrowers with low credit scores, meaning that the risk of default is higher than lenders with better credit ratings who are entitled to receive prime mortgages.

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