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 28, 2008

Housing pricing grows worse

The home prices decline is showing no sign of letting up and the amount of foreclosures continues to rise.

A closely-watched national index released yesterday indicates home prices fell 8.9 percent in 2007 -- the biggest price drop in the index's 20-year history.

The S&P/Case-Shiller U.S. National Home Price index indicates that in the New York region, which includes counties in New York State, Connecticut, New Jersey and Pennsylvania, home prices tumbled 5.6 percent year-over-year in 2007.

The quantity of homes facing foreclosure jumped 57 percent in January compared with a year ago. Lenders are increasingly forced to take possession of homes they can’t unload at auctions, said RealtyTrac.

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