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, March 3, 2009

New home sales hit a new low in the U.S.

Sales of new homes in the United States have plummeted from 10.2% in January from the previous month, reaching 309 000 (annual rate), a new historic low.

These are the figures released last Thursday by the U.S. Department of Commerce. This figure, the lowest since the first publication of this statistic in 1963, is well below analysts' forecasts, which projected 324 000 sales.

January marked the sixth consecutive month of decline in new home sales. The number of sales in December was revised down to 344 000 housing units at an annual rate (instead of the originally announced 331 000).

The decline in annual sales reached 48.2% in January.

The median sales price was established for its 201 100 U.S. $ 223 against $ 200 in December, down almost 10%.

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