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, September 14, 2008

Unexpected decline in retail sales in August

Retail sales in the U.S. have accused an unexpected decline of 0.3% in August, and fell for a second consecutive month after the revised 0.5% number in July, according to data released Friday by the Department of Commerce .

Economists polled by Reuters and Bloomberg were expecting an average of 0.2% increase in retail sales.

Sales of cars and auto parts rose by 1.9% last month, which is their first increase since January.
Excluding the auto sector, retail sales reflected a decline of 0.7%, against -0.2% which was due.

The gasoline sales fell by 2.5% last month - their biggest monthly decline since mid-2007 - after rising 0.2% in July.

With all those negative numbers and both Fannie Mae and Freddie Mac being in the hands of the government, one is wondering if the Mortgage market will come back to more reasonable terms.

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