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, December 5, 2008

1 in 10 real estate borrowers threatened in the U.S.?

One in ten real estate borrowers is potentially threatened with expulsion from his home in the United States, said Friday the Mortgage Bankers Association MBA.

The rate of outstanding mortgages in the United States jumped to 6.99% in the third quarter, after 6.41% in the second, the MBA said.

But the proportion of owners in difficulty in near 10% when adding those who are already the subject of a foreclosure: they were 2.99% during the quarter, against 2, 75% in the previous.

Among subprime households, considered from the outset as having a greater risk of default, the rate of unpaid reached 21.3% (against 21.0% in the quarter), if the loan is variable rate; it is still at 18% (against 16%) for fixed rate.

The rise of unpaid is also found among the most creditworthy households: the rate of arrears among those who chose a variable rate reached 8.2% (against 7.5% in the previous quarter), while it was 3.3% (against 3.1%) for those with a fixed interest rate.

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