Mortgage, loan and property. What is a mortgage?

A mortgage is putting a property as a guarantee to a lender as a security for a mortgage loan.

While a mortgage in itself is not a liability or a dept, it is evidence of a debt. It is a transfer of an interest in property, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the property when the terms of the mortgage have been satisfied or concluded.

In other words, the mortgage is a guarantee for the loan that the lender makes to the borrower. In all but a very few states, a mortgage creates a lien on the title to the mortgaged property.

Friday, February 22, 2008

Congress is considering a rescue for hundreds of thousands of homeowners

Inspired in part by some of the nation’s largest banks, the Bush administration and Congress are considering costly new proposals for the government to save hundreds of thousands of homeowners whose mortgages are higher than the value of their houses.

Not since the Depression has a bigger share of Americans owed more on their homes than what they are worth. With the crumple of the housing boom, nearly 8.8 million homeowners, or 10.3 percent of the total, are over their head with mortgage problems. That is more than double the percentage of just a year ago, according to a new estimate by Moody’s

More information in the New York Times.

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