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, April 22, 2008

Buy your home at a fire-sale price!

To a small but growing number of buyers across the country, the depressing housing recession offers a exciting upside: They can get a home at a fire-sale price. In some metro areas, price declines are galvanizing bargain hunters — mainly first-timers, foreign investors and out-of-state buyers looking to rent properties they hope to sell later for a premium.

Those buyers are forming isolated pockets of real estate movement, especially in cities where foreclosure rates are high but jobs remain available to attract potential property buyers.

In some areas, such as Charlotte and Detroit, property sales are ticking upward, following a trend of upward sales as far back as 2006. In other markets, bargain-hunting movement is still too sporadic to fuel an overall rise in sales.

Few economists expect the intermittent purchases to signal a bottom to the housing market's slump, but the bargain-hunting for home deals is a hopeful sign amid all the bad news about the troubled housing market.

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