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.

Thursday, April 23, 2009

Property resale is falling faster than expected in the U.S.

Sales of existing housing in the United States went back in a declining slope in March, by 3% compared to February, dropping to 4.57 million units at an annual rate.

These are the figures released Thursday by the National Association of Realtors (NAR). This decline is greater than analysts' expectations, which projected sales of 4.65 million dwellings, seasonally adjusted.

The NAR has revised slightly lower sales figures for the month of February, the increase had surprised analysts. The NAR believes it to be at 4.71 million at an annual rate, instead of the 4.72 million it announced a month ago.

According to the association, the share in sales of the cheaper housing has increased, indicating a return on the market of first time home buying. This is good news for the housing market.

However, sales of higher priced housing are still at a standstill because of rising interest rates for large loans. Oh well...

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