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, January 23, 2009

New low for construction permits in the U.S.

The number of housing starts and housing construction permits issued in the United States continued to fall in December, reaching a new low point in half a century of publication of these two indicators.

This was announced Thursday by the Commerce Department in Washington.

The authorities have given 549 000 building permits in December at an annual rate and seasonally adjusted, or 10.7% less than the previous month. Analysts expect a smaller decline, with 615 000 licenses.

With the exception of June, each month of 2008 saw a decrease in the number of permits issued over the previous month. The indicator had reached in October its lowest level since the beginning of its publication in 1960.

In November, the decline was 15.8%, according to revised figures from the ministry.

The number of permits issued in December was 50.6% lower than it was a year earlier.

This decline indicates that the long-awaited rebound of the construction is not for now, while the number of started sites continues to fall.

In December, it fell by 15.5% to 550 000. Again, analysts were expecting a not as strong decline.

The indicator is down for the third month in a row and is at its lowest level since the beginning of its publication in January 1959.

Over a year, its decline was 45% in December, according to the ministry.

The decline in housing starts in December due to a decline in new construction of houses (-13.5%), reaching a new low, and the launches of residential buildings (-17.1%), the lowest since January 1994.

With regard to building permits, the number of permits granted to individual homes - a key indicator for the markets - has declined by 12.3% compared to November, reaching a new low, while the permit for residential buildings fell 5.6% to its lowest level since February 1994. The housing crisis is far from over...

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