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.

Wednesday, September 17, 2008

The construction of new U.S. homes fall by 6.2%

The construction of new homes fell in August to its lowest level in more than 17 years in the U.S., according to figures announced Wednesday by the Department of Commerce.

In total, 895 000 new housing units were constructed in August, on an annualized basis, representing a fall of 6.2%.

This is the lowest figure since 1991, proof of the magnitude of the real estate crisis that continues to weaken the U.S. economy.

Analysts expected a decline of 1.6%. The home crisis is far from over.

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