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, November 14, 2008

Freddie Mac asks for money to the Treasury

The American group of mortgage refinancing, Freddie Mac, under supervision of the government, recorded a huge loss of over U.S. $ 25 billion in the third quarter and asked for money to the U.S. Treasury.

On the three-month period completed by the end of September, the net loss of Freddie Mac has swelled to U.S. $ 25.3 billion, against a loss of U.S. $ 1.2 billion a year earlier, weighed down by heavy depreciation and provisions exceptional.

Reported the number of shares, the loss amounted to 19.44 dollars, against 2.07 dollars in the third quarter of 2007. Analysts who establish their forecasts excluding exceptional items, relied on a loss of 89 cents.

Faced with growing losses, Freddie Mac also said to have asked the U.S. Treasury the sum of U.S. $ 13.8 billion, which it hopes to receive by 29 November 2008.

Freddie Mac and the other pillar of mortgage refinancing in the United States, Fannie Mae, undermined by the deterioration of financial markets and real estate were placed under the supervision of the government in early September.

The Treasury plans to invest up to U.S. $ 100 billion in each of the two companies to consolidate their finances.

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