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, February 24, 2009

New records in house prices in the U.S.

Housing prices in the United States in December saw a new record decline, falling 18.5% year on year, according to the S & P / Case-Shiller measure prices in the 20 largest U.S. cities and published Tuesday.

After a decline of 18.2% in November, analysts expected a decline of 18.3%. The fall in house prices in the ten largest cities in the country has also reached a new record, at -19.2% over one year, adds the study.

December was the 29th consecutive month of decline in these two indices, which are constantly establishing new records every month since last May.

Shift in monthly housing prices fell by 2.5% in twenty major cities in December, against -2.3% in November.

In the ten largest cities, prices fell by 2.3%, beating their decline the previous month by 0.1 points.

Throughout the fourth quarter of 2008, housing prices have slumped by 18.2% year over year.

"In December, average prices of homes in the United States were at about the level they were in the third quarter of 2003. Since the peak of the second quarter of 2006, they plunged 26.7%," write the authors of the study.

According to S & P / Case-Shiller 20 cities under scrutiny of the study showed negative performance, and 13 of them recorded successive record declines since December 2007.

As in previous months, the cities hardest hit by the decline are cities of the "sun belt" south of the country. Phoenix comes to mind again (-34%), followed by Las Vegas (-33%). In third place comes the Californian city of San Francisco (-31.2%).

Then Miami (-28.8%), Florida, and two other California cities, Los Angeles and San Diego, down respectively by 26.4% and 24.8%. Prices in Miami, Las Vegas, Phoenix and San Francisco have fallen by over 40% from their respective peaks in 2006.

Monday, February 23, 2009

The U.S. gov. plan for real estate will have rapid effects

The plan of U.S. President Barack Obama to help millions of homeowners at risk of losing their homes will produce effects “very, very fast," assured U.S. Secretary of Housing and Urban Development, Shaun Donovan on Thursday.

"We believe we can achieve very, very quickly that aid to the millions of families in need," he said on CNN. "There's going to have a real impact in March, with lasting changes, meaningful and long term," said Sheila Bair, head of the federal agency that insures bank deposits (Federal Deposit Insurance Corporation).

The President Obama announced Wednesday a plan of at least 75 billion dollars to help millions of homeowners threatened with seizure and address what has precipitated the crisis in the global economy.

But voices were raised against this plan in opposition. Two elected representatives of the Republican minority in the House of Representatives, John Boehner and Eric Cantor, sent a letter listing a series of "unanswered questions" about the plan to Barack Obama.

They believe that it will reward the banks, when they took unreasonable risks in giving loans too easily, and help those who have falsified their income to obtain a loan.

Republican Senator Chuck Shelby, chairman of the Banking Committee of the Upper House, said meanwhile that the plan "seems to help those who least need and not help those in need."

"The most outrageous is that the President's plan will use taxpayers' money to help people do what they are supposed to do: pay their loans," he said in a statement.

The plan also uses taxpayer money to pay the banks to do what they should have done: “change the rate.”

Lets all hope that this mortgage help will, in fact, help!