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.

Wednesday, February 27, 2008

government could purchase up to 1 million mortgages over a period of five years

Investors could sell up to $15 billion of troubled mortgages to the government under a plan major House members are discussing to bolster the U.S. housing market.

The mortgage plan would allow the government to purchase up to 1 million mortgages over five years in an effort to help struggling owners avoid foreclosure, and financial markets avoid more mortgage-related losses. The mortgage loans would be bought by the Federal Housing Administration, a Depression-era agency that insures loans made to borrowers with lower or bad credit.

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