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, April 11, 2008

Foreclosure bill passed by the Senate

The plan contains tax breaks for builders, credit for the acquisition of foreclosed property and grants to buy and repair abandoned homes.
On Thursday the Senate passed a bipartisan package of tax breaks and other items designed to help businesses and homeowners go thru the housing crisis.

The measure passed by an impressive 84-12 vote, but even supporters of it acknowledge it's tilted too much for businesses like homebuilders and does too little to help borrowers at risk of losing their homes.

The plan merges large tax breaks for homebuilders and a $7,000 tax credit for people who purchase foreclosed properties, as well as $4 billion in grants for communities to buy and fix up abandoned homes.

Monday, April 7, 2008

Fannie Mae beefs up foreclosure guidelines

Fannie Mae announced new guidelines that will affect the loans it purchases from lenders all over the US, securitizes and then sells to investors on Wall Street. These new rules will affect potential homebuyers all across the nation, especially any homebuyer who has suffered a foreclosure in the recent past.

In an official release Monday Fannie said: “The dramatic shifts in market dynamics over the past several months have prompted us to continually review the full spectrum of our risk appetite, eligibility requirements, automated underwriting risk assessment, and pricing. It is important that we have underwriting and eligibility criteria that foster sustainable homeownership for the borrower”