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.

Tuesday, March 25, 2008

American confidence is now at its lowest since 1973

The confidence of American consumers has plunged in March to its lowest level for the last five years. The tightening of credit, inflation and deterioration of the job market is bringing many to believe that the economy is now in recession.

The Conference Board, a research group supported by business, said Tuesday that its consumer confidence index tumbled to 64.5 in March, down from 76.4 in February. This was significantly less than the index of 73.0 expected by economists surveyed by the firm Thomson/IFR.

The index is weakening since July and its evolution is scrutinized, since a decline in consumer confidence tends to lead to a slowdown in consumer spending, which then tends to slow the economy.

The director of the Research Center of the Conference Board, Lynn Franco, said that the index recorded in March was the lowest since the 64.1 noted in March 2003, just before the American invasion of Iraq. She said that a new decline is expected, since consumers are very pessimistic.

Two other related indices have also fallen. The first, which reflects current economic conditions, is now at 89.2, down from 104.0in February. The second one, which reflects the economic conditions to come, crashed at 47.9, its lowest level in 35 years, compared with a level of 58 in February. In December 1973, this index stood at 45.2, in the wake of the Arab embargo on oil and the Watergate crisis.

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