Straw buyer, no documentation loan, red flags Flashcards
(4 cards)
1
Q
Another person’s ____ is used to purchase a property and secure financing but does not actually own it
A
credit
The straw buyer’s name appears on the title and mortgage, but they have no real intention of living in the property. They are putting their name on the paperwork for someone else.
2
Q
Many times, straw buyers are victims of ____ ____
A
identity theft
3
Q
What is a no documentation loan?
A
A borrower with a certain minimum credit score could qualify for a mortgage without disclosing employment info, income, and assets.
4
Q
What is a red flag when it comes to getting a loan and the appraisal?
A
Inflating the appraised value of property for the purpose of obtaining more financing.
