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.

Monday, February 23, 2009

The U.S. gov. plan for real estate will have rapid effects

The plan of U.S. President Barack Obama to help millions of homeowners at risk of losing their homes will produce effects “very, very fast," assured U.S. Secretary of Housing and Urban Development, Shaun Donovan on Thursday.

"We believe we can achieve very, very quickly that aid to the millions of families in need," he said on CNN. "There's going to have a real impact in March, with lasting changes, meaningful and long term," said Sheila Bair, head of the federal agency that insures bank deposits (Federal Deposit Insurance Corporation).

The President Obama announced Wednesday a plan of at least 75 billion dollars to help millions of homeowners threatened with seizure and address what has precipitated the crisis in the global economy.

But voices were raised against this plan in opposition. Two elected representatives of the Republican minority in the House of Representatives, John Boehner and Eric Cantor, sent a letter listing a series of "unanswered questions" about the plan to Barack Obama.

They believe that it will reward the banks, when they took unreasonable risks in giving loans too easily, and help those who have falsified their income to obtain a loan.

Republican Senator Chuck Shelby, chairman of the Banking Committee of the Upper House, said meanwhile that the plan "seems to help those who least need and not help those in need."

"The most outrageous is that the President's plan will use taxpayers' money to help people do what they are supposed to do: pay their loans," he said in a statement.

The plan also uses taxpayer money to pay the banks to do what they should have done: “change the rate.”

Lets all hope that this mortgage help will, in fact, help!

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