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.

Monday, September 29, 2008

Injection of liquidity: Intervention by the Federal Reserve and other central banks

The U.S. Federal Reserve announced today new measures, together with other central banks including the European Central Bank (ECB), to address the financial crisis.

According to the Fed, these measures are designed to "significantly increase" the cash available to financial institutions and banks. The U.S. Federal Reserve did not provide figures but says the ECB have made available with the Fed at least $ 240 billion.

The Federal Reserve cited "ongoing tensions" on the need for short-term financing. In New York, the stock market opened today down 3%. The Dow Jones core values fell by 333.88 points to 10809.25 points.

These measures are happening while European states come to the rescue of their banks. The giant Belgian-Dutch banking and insurance Fortis said it was confident (today) after the rescue plan was announced the previous day by the three governments of Benelux (Belgium, Netherlands, Luxembourg), who decided to inject 11, 2 billion euros to prevent the establishment of being sunken by the financial crisis.

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