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, March 17, 2008

Is the mortgage crisis going to get worst?

According economist Paul Krugman, we are in this until 2010: Bottom line for house owners: An average drop of 25%.

"I think home prices will fall enough for us to produce about 20 million people with negative equity. That's almost a quarter of U.S. homes."

More info on cnnmomey.com

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