text: Using "straw" borrowers is illegal practice. You have the person, the one with bad credit bad income etc that wants to buy the house. They broker, real estate agent or even the person buying or selling the house recruits the "straw" to use their income, credit etc. They receive a profit from using this information. The reason this is illegal is because it is misrepresentation to the lender. No one is protected from financial loss because if the lender finds out you are doing this they can call the loan or foreclose on the property and all parties can be prosecuted under certain State laws against this practice and any monies exchanged or placed in escrow can be seized. This is considered mortgage fraud!!!!