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.

Friday, September 19, 2008

Financial crisis: What will the impact be on American families?

Investors see with a good eye the rescue plan set up by the American authorities to cope with the stock market crisis, but what will be its impact on American families?

This morning, George W. Bush has sought to reassure the population. "Significant amounts of taxpayer dollars are at stake," admitted the American president. However, he added: "we expect that this money will be repaid."

Washington's plan aims to buy the assets of dubious banks.

It could cost the U.S. taxpayer "hundreds of billions of dollars," said Henry Paulson. Nevertheless, it’s cheaper to American families than a series of bankruptcies of financial institutions, said the U.S. Secretary of Treasury.

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