Sub-mortgage Part 2

June 30, 2008 More Information No Comments

Charge – This is when the immovable property of the debtor is used as security for the creditor. This differs from the mortgage because while the mortgage involves the transfer of interest in the property, the charge does not.

Lien – Pertains to the right of holding in the debtor’s goods until he takes care of his debt. This has two kinds: general and particular. In general lien, the debtor has the right to retain all the goods to the debtor. In particular lien, specific property is kept as security.

Hypothecation – This is the right to recover debt against security of specific goods. This is mortgage of movable property without transferring possession of the goods.

Sub-mortgage Part 1

June 27, 2008 More Information No Comments

A sub-mortgage is the agreement wherein a mortgage lender uses a mortgage held by him as collateral for his loan. The mortgagee is pledged as a security for a loan to the mortgagee. The original lender uses a borrower’s property instead of his own property for getting a loan.

There are 3 kinds of sub-mortgage: Pledge or Pawn, Charge, Lien and Hypothecation.

Pledge or pawn – This is a contract where an item is given to the lender to stand as security against the loan. This may be valuable things such as jewelry, gold, documents and share certificates. The pledge will be effected when the items are given to the lender.

Home Prices Continues to Drop

June 13, 2008 Information No Comments

16.jpgRecord shows that as early as this year, home prices continued to decline in increasing rate. Single-family home prices dropped by 11.4% in 10 major metropolitan areas last January, this is according to S&P/Case-Shiller home-price indexes. This index data track the price path of single-family homes in particular metropolitan area by matching it to the price pairs of many individual houses. In their data, Las Vegas and Miami were the weakest home market last

January with at least 19% decline. Followed by Phoenix, with 18.2% decline and Washington & Minneapolis with 10.9% and 10% decline, respectively

Also, because of an increased abundance of foreclosed homes in the market is likely pushing down house prices in some areas.

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