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, October 23, 2008

Washington is preparing a plan to protect real estate owners

The Assistant Secretary temporary U.S. Treasury, responsible for financial stability, Neel Kashkar, said Thursday that his administration was working on a plan to protect property owners in difficulty.

"We started working with the Department of Housing and Urban Development and Hope Now (a structure to help troubled owners set up by banks) to maximize opportunities to help as many owners as possible while protecting taxpayers," said Kashkar at a Senate hearing on the implementation of the law of emergency economic stabilization.

"When we buy mortgages and securities backed with these claims, we will seek every possible opportunity to help owners of those homes," said Kashkar, which is responsible for leading the buy-back program of doubtful assets of banks .

"We hired Donna Gambrell, director of local development finance institutions fund (government agency to provide credit to those who are excluded from the commercial distribution), to oversee this effort and to fill the post of Director of the preservation of property," said Deputy Secretary.

Mr. Kashkar has also pleaded for the rescue of the American banks, saying that "every American depends on the flow of money into (the) financial system."

"He depends on it for its loan to buy a car, a house, his studies and to provide for his household. Employers rely on credit to pay their employees," he recalled.

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