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.
Statutory lien is a category of liens that stem from statutes and do not depend on the common law or specific contractual provisions for their existence.
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.
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.
A tax lien is a lien acquired by court order that gives the government a security interest in property because of a failure to pay assessed taxes. If the property is mortgaged a tax lien will take precedence over the mortgage.
A title search is a search of the public records for any defects or encumbrances in a property's chain of title. Title searches are needed so that prospective buyers and secured creditors are not later surprised by
A workout is a mutual agreement negotiated between a debtor and creditor to manage and resolve a debt without resorting to formal bankruptcy proceedings.
