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.

Tuesday, January 27, 2009

U.S. consumer confidence at lowest - unprecedented decline in house prices

The index of U.S. consumer confidence hit a never seen low in January. Meanwhile, housing prices in the U.S. in November registered a new record decline, falling 18.2% year on year, according to the S & P / Case-Shiller.

The index of U.S. consumer confidence hit a new bottom in January, reflecting rising unemployment and the problems of the real estate sector. The index of the employers' federation Conference Board came to 37.7 against 38.6 (38 in first estimate) in December, while the consensus gave 39.

"Consumers remain pessimistic about the state of the economy," said Lynn Franco, director of research center of the Conference Board, cited by Reuters. "Until there is a significant improvement in expectations index, we can not say that the worst is over."

The expectations index fell to 43 against 44.2 (43.8) the previous month. Yet the number of respondents felt that a job is difficult to find a slightly decreased (to 41.1 against 41.5) but the number of respondents anticipating an increase in their income has similarly declined to 10 against 12.7. Only 13.3% believe that the conditions of business will improve in six months, with little change figure compared to 13.4% in December.

Meanwhile, prices of homes in the United States fell 18.2% in November compared with same month of 2007, an unprecedented decline as was the case in October, shows that the investigation Tuesday monthly Standard & Poor's / Case-Shiller, which confirms that the U.S. housing market is experiencing a deep recession.

The composite index calculated on the basis of twenty metropolitan areas show a decline of 2.2% over one month. The decrease over one year is slightly lower than anticipated by economists who expected a decline of 18.4 to 18.9%.

"The free fall of home prices in the housing market has continued throughout the month of November 2008", commented in a press release David M. Blitzer, chairman of the indexes from Standard & Poor's.

1 comment:

Improvedliving said...

well these are lot of job losts