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, February 6, 2009

New low for construction in the U.S.

The number of housing starts and housing building permits issued in the United States continued to fall in December, reaching new low point in half a century of publication of these two indicators.

This was announced Thursday by the Commerce Department in Washington.

The authorities have granted 549 000 building permits in December on an annual and seasonally adjusted basis, or 10.7% below the previous month. Analysts expected a smaller decline, with 615 000 permits.

With the exception of June, each month of 2008 saw a decrease in the number of permits issued over the previous month. The indicator in October had reached its lowest level since the beginning of its publication in 1960.

In November, the decline was 15.8%, according to revised figures from the Commerce Department.

The number of permits issued in December was 50.6% lower than it was a year earlier.

This decline suggests that the long-awaited rebound of the construction will not occur immediately, while the number of sites starts continues to fall.

In December, it fell by 15.5% to 550 000. Again, analysts were expecting a weaker drop, relying on 610 000 starting sites of construction.

The indicator was knocked for the third month in a row to its lowest level since the beginning of its publication in January 1959.

Year over year, its decline was 45% in December, according to the department.

The decline in housing starts in December due to a decline in new construction of individual houses (-13.5%), reached a new low, and the launches of residential buildings (-17.1%), reached it’s lowest since January 1994.

With regard to building permits, the number of authorizations for homes - a key indicator for the markets - has declined by 12.3% compared to November, reaching a new low, while permits for residential buildings fell to 5.6%, its lowest level since February 1994.

Obama, we all hop your plan works...

Wednesday, February 4, 2009

522 000 jobs lost in the private sector in the U.S.

The private sector has lost 522 000 off-farm jobs in January, according to a study of human resources firm ADP released Wednesday.

The extent of job losses is higher than what analysts predicted, which projected 515 000 net cuts. ADP has revised downwards its estimate of losses for the previous month to 659 000 (instead of the originally announced 693 000 – A slight improvement, but another sign that we are in a recession).

According to ADP, the services sector, which accounts for almost 85% of non-agricultural employment in the United States, has lost 279 000 jobs in January.

Employment has also declined for the 24th month in a row in the industry sector, where 243 000 were lost.

I don't know what impact this will have on home prices, but it is not good. America, it's time to wake up!