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.

Monday, February 11, 2008

How to Find Deals on Foreclosed Homes

Foreclosure: Such properties can often be bargains, but there are risks involved in buying them.

It's cruel but true: You can benefit from others' hardship. The increase in foreclosures means that homebuyers can find great deals on houses that have been reclaimed by lenders. They are frequently sold for prices well under the market value because the lenders are eager to get rid of them.

The low-priced homes do come with potential downsides: Some have liens against them or mortgages associated with them, which can be inherited by the new owners. It can also be hard or impractical to inspect such properties in advance of their sale, which means there's no time to check if the basement has been flooded or if the roof is still good.

If you're willing to brave the risks, then your first challenge is locating the bargains. Here are five ways to find the best deals.

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