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, August 6, 2009

U.S.: further increase of the promises of housing sales

The promises of housing sales in the United States rose in June for the fifth consecutive month, according to figures released Tuesday by the National Association of Realtors (NAR).

In seasonally adjusted, the index measuring these promises sales grew by 3.6%, while analysts expect a rise of 0.3% only. In one year, the increase is 6.7%. And this is the first time since 2003, when the housing market began a dramatic growth which led to the crisis, the index advancing for five consecutive months.

"The historically low interest rates on mortgages, affordability and wide range encourage buyers who were waiting," noted the chief economist of NAR, Lawrence Yun, stressing however that the activity was concentrated on "cheap housing".

The President of the NAR, Charles McMillan, adding that this trend should be confirmed by a lower rate of cancellations of sales, "which had come up recently."

The home crisis is not over, but it looks better.

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