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.

Thursday, September 25, 2008

The resale of homes fell by 2% in the U.S.

The resale of homes in the U.S. fell slightly more than anticipated in August to an annualized 4.91 million units.

This is a decrease of 2.2% when compared to July's revised level of 5.02 million units.

This is a result below expectations as economists were anticipating data stopping at 4.94 million.

Since August 2007, the rate of resale homes has declined by 10.7%.

The stock of homes fell to 10.4 months in August, down from 10.9 in July.

At issue of data, spokesman for the National Association of Realtors (NAR) have urged Congress to act to help potential owners.

"We urge Congress to restore access to a healthy mortgage system so that people can have the ability to make and keep long-term investment (...) and home ownership. Congress must take care of Main Street and not only save Wall Street, "said Richard Gaylord, president of the NAR.

My 2 cents: this is getting so bad, that I wonder if people should own homes. Maybe we should own banks... Government save banks, what about people.

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