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 15, 2008

Former Fed Chairman Alan Greenspan: Recession chances '50% or better'

Alan Greenspan said Thursday there's at least a 50% chance the United States will slip into recession, and that the economy won't clear until home prices bottom out.

Greenspan, speaking at the Cambridge Energy Research Associates' annual energy conference in Houston, said that what may upset the economy are tightening credit markets and a potential slowdown in consumer spending sparked by defaults in the real estate market.

"We're clearly on the edge, it's 50% or better" chances the economy will slip into recession, said Greenspan.

Former Fed Chairman Alan Greenspan said things won't look brighter until real estate prices stop dropping and banks figure out how much money they lost - only then will they be willing to step up lending again.

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