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.

Sunday, July 6, 2008

Record Annual Foreclosure Rate Increases in Q2 in many US cities

Foreclosure rates where higher during the second quarter, so high in fact that new records were broken in many cities: Los Angeles, Seattle, Miami and New York amongst others, according to a report published by PropertyShark.com.

Los Angeles led the four cities with an increase of 282.01% in the second quarter compared to last year's Q2. Los Angeles reported a record 14505 new residential foreclosures according to the report published by PropertyShark.com. The estimated new trustee sales rose 63% over the previous year.

" The foreclosure chart is unfortunately starting to look like a ski jump", said property Product Foreclosures Shark team member, Adina Dumitru " with the current number of new trustee sales this quarter increasing at one of the highest rates we have seen over the last two years".

New York City reported 961 new households foreclosures in Q2 2008, an increase of 49.22% compared to Q2 2007. Single-family houses located in Queens and Brooklyn were the biggest part of the properties that were auctioned, noted the report.

Miami had 2677 new foreclosures in Q2 2008, an increase of 108.81% from the previous year. Seattle has reported 493 foreclosures in Q2 2008, an increase of 47.60% compared to Q2 2007.
Those numbers are not very reassuring!

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