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.

Thursday, February 7, 2008

Homeowners do not believe in recession

75% of homeowners estimate their home has gained or retained its value.

Even if reports show home values going into an historic decline, more than 75% believe their own home has not lost value in the past year, according to an internet survey.


Zillow.com, a Web site that gives estimated home values, had the survey done by Harris Interactive.

Out of 1,619 surveyed, 36% homeowners believe their home has increased in value, and another 41% believe the value of their home has stayed the same.

Zillow's own estimates are that the value of homes has declined 5% on average last year, with many markets hit with much steeper declines.

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