Short sale. This is a situation when the lenders agree to accept the proceeds of a sale even though it is less then current mortgage balance and forgive the rest of what is owed. Short sale takes place when the owner cannot make the mortgage payments, and the lender wants to avoid a lengthy and costly foreclosure procedure by letting the owner to pay off the loan for less than what he/she actually owes.

HUD-1. A document that provides an itemized listing of the funds that were paid at closing. Each type of expense goes on a specific numbered line on the sheet. The totals at the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at closing. The HUD-1 statement is also known as the "closing statement" or "settlement sheet."

Joint Tenancy. A form of ownership or taking title to property which means each party owns the whole property and that ownership is not separate. In the event of the death of one party, the survivor owns the property in its entirety.

Prime Rate. The interest rate that banks charge to their preferred customers. Changes in the prime rate are widely publicized in the news media and are used as the indexes in some adjustable rate mortgages, especially home equity lines of credit. Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the interest rates of mortgage loans.

Cooperative housing. A form of real estate ownership where corporation acquires land and building for the purpose of providing the shareholders with housing. Every shareholder receives a stock certificate (evidence of ownership in the corporation) and a proprietary lease (evidence of right of possession of a particular apartment) Number of shares is usually proportional to the amount of space in each apartment. Each party has to pay monthly fee which includes proportionate share of any cooperative mortgage debt, operating expenses, municipal taxes and reserve fund. In case one party doesn't pay monthly fee all other cooperative owners are responsible. If shareholder wants to sell he /she must sell to the cooperative, then shareholders need to agree to convey to the new owner.

Reverse mortgage is a loan available to eligible homeowner 62 or older (a retiree on limited income, such as social security). Generally, with a reverse mortgage, you receive money from a lender while you stay in your home. Payments up to a certain limit are made by mortgagee to the borrower against the equity in his or her home. You don't have to pay the money back for as long as you live there and keep the property in good condition, but the loan and interest must be repaid when you die, sell your home, or move to a different primary residence. The amount you can borrow depends on your home's value, your equity, your age and current interest rate.

Adverse possession is the occupant's right to acquire legal title to a property held by title holder by deed. This situation is possible when the occupant holds property openly, notoriously, adversely, and without permission for the statutory period.

Mechanic's lien. A legal claim placed on real estate by someone who is owed money for labor or services contributed to the property for the purpose of improving it.

Variance. Permission from town to use land in exception to zoning laws.