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.

Wednesday, April 2, 2008

Students and educators will also suffer the impact of the subprime

According to Forbes.com there is another group to add to those feeling the impact of the U.S. subprime mortgage meltdown: students and educators.

28% of financial support for America's public schools comes from local property tax. Property tax revenues, which in many areas of the country had grown along with property values, are on the brink of remaining flat or even getting smaller in the coming years. That’s the opinion of the National Center for Education Statistics,

"Homeowners that were in this crisis felt it first. It became a problem for the city when we saw our homes vacant," says Douglas Palmer, the mayor of Trenton, N.J. "When Wall Street started feeling it, it became a problem for the federal government. This cycle now is coming for the school budgets."

As city and school officials across the country put together budgets for the next school year, they're facing a reduced amount of money than desired and, in some cases, pressure to cut taxes.

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