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, May 1, 2009

The Fed's gives assistance to the sector of commercial real estate

The Federal Reserve of the United States announced Friday the launch of aid to the commercial property sector shows signs of weakness with the economic crisis.

The assistance of the central bank will go through one of its financial support programs to the existing economy: lending to asset backed securities (TALF), designed to facilitate the refinancing of a number economic agents.

This program officially launched in March has a total of 200 billion dollars and is designed to unlock credit markets.

So far, it allowed the Fed to pay interest rates beneficial to investors wishing to acquire securities issued by companies specializing in consumer credit, credit cars, student loans and loans to small companies.

The changes will open this Friday the program to securities backed by commercial real estate lending, said the Fed, which hopes to avoid defaults in this sector.

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