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.

Saturday, May 24, 2008

In just one year, the median price of U.S. homes fell by 8.5 percent

Sales of existing homes fell in April, in the USA, for an eighth time in nine months, the number of unsold single-family homes reaching its highest level in over two decades, revealed Friday the National association of real estate brokers.

According to the expert panel, sales of single-family homes fell by one percent compared to March, and reached 4.89 million units, which equals the historic low of January 2008, according to data dating back to 1999.

The median price of existing homes has declined by 8.5 per cent in April compared to last year, falling to $ 200,700.

Home prices

Analysts expect further loss of value for homes, because of the enormous quantity of unsold houses – if the actual real estate business selling trend continues, it should take 10.7 months to sell those homes. Their number of unsold homes has reached its largest level since June 1985.

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