A mortgage is a loan secured by your home. Guaranteed means that if you cannot pay, the lender can sell your house to recover the money. Remember: your home can be confiscated if you do not pay the credit rates. Lenders of mortgages are priority creditors, they do everything possible to recover the money. If you get yourself in the situation of not paying , the first step is to talk to the lender to resolve the situation before he takes your home.
Lending operation also implies the existence and assuming some risks taking by the lenders and implies some guarantees in favor of the borrower. Securities may be structured as follows: guarantee is the commitment made by any third party (guarantor) to pay the creditor’s debt if the debtor is in default and includes: simple warranty offers the possibility for the guarantor t to negotiate the fulfillment of its payment obligations in the way of asking the primordial execution of its debtor or to answer only for his part, if there is more than one guarantor. The solidary guarantee oblige the guarantor, if it is required by the lender to pay at the same time or even before the debtor, if preferably presents apparently conditions of solvency. Collateral guarantee is applied on some properties of the creditor or other third party (s) and include: retention – provides the lender the right to claim ownership of an asset of the debtor as long as it was not fully paid a debt that is related to that good. To achieve this right must be fulfilled: the tangible property owned by the debtor to have a connection with debt and the debt must be certain and due.
Guarantee by mortgage
The financial institution which lend you lending wants to have the security that they will ensure their money back if you will not be able to pay the full loan rates. Mortgages for mortgage loan guarantees last until the full repayment of the loan to ensure that they are ensured. Until the full repayment of the loan, mortgaged real estate will be disposed only with the prior consent of mortgage lenders. Also, it is possible to guarantee the loan with another real estate than to be bought, owned property that can belong to your relatives.

Securing the co-debtor
Imagine that you found the house you want to buy, but the revenue that you have is not enough to cover the entire loan. It is possible that in certain circumstances, to ask a family member or co-debtor. Using co-borrowers allows those who buy for the first time to borrow more than would allow their current income. The co-borrower is the person who undertakes jointly with the borrower to pay the indivisible obligations under the credit agreement. The co-borrower must not however make draw downs. Co-borrower is usually a spouse, a parent or a close relative Lenders will accept one or maximum two co-borrowers. The income of the co-debtor, and not that of the person who borrowed, will be used to guarantee the loan. The mortgage loan is held on behalf of the borrower, but the security is on a percentage of the property of the borrower or co-debtor’s property.

Global crisis will have disastrous economic effects since the builders, designers, furniture manufacturers and ending with those who mounted air conditioning didn’t had an intense activity. Basically, everybody loses, with very few exceptions, appreciate some economical analysts. The attention it is draw to what it is so-called “special offers” and “real estate bargains. In an interconnected economy, any blockage in a particular area, affects both related fields and other areas, in a very logical way but also unexpected , said real estate specialists. After the international financial crisis led to stagnant sales of homes after banks began requiring stronger guarantees from developers including office buildings, many developers have announced projects to freeze or stopping the works.
Besides this, the world economic crisis could send the unemployed up to 51 million people, if the situation continues to deteriorate, warned Wednesday representatives of the International Labor Office (ILO), to report on the labor market in 2009, reports AFP.

Comparing the situation in 2007 the number of unemployed worldwide could increase by 18-30 million and 51 million even if the situation continues to deteriorate . In accordance with this latter scenario, worst, the number of unemployed worldwide would advance to 230 million, compared with 190 million in 2008 and 179 million in 2007, the ILO estimates. The report showed that “more than 200 million people, most of the developing economies, could thicken among extremely poor workers”, and so the most worst scenario could materialize ILO representatives will be “realistic”, not “alarmist”. ILO warns that economic turmoil has “increased anxiety” about the social effects of globalization.
We will be witness at the doubling of unemployment and the most affected sectors are construction and civil engineering, food, industry and finance. There is a risk that almost 20% of those who work in finance-banking and insurance to lose their jobs next year. Most affected will be those that provide advice and those who work in insurance for freelancers.

On August the 6th , 2007 a story appear that the American Home Mortgage Company, Credit group ranked tenth in importance in the United States, is declared bankrupt. Many of the investors in this company had retreated their money, and it was forced to lay off 90% of employees.

People without access to a mortgage loan from traditional banks (a prime loan) due to credit problems or insufficient income can borrow from individuals or from mortgage curriers at an interest rate generally higher (which called subprime loan). In the U.S., almost 20% of mortgage loans are high risk. The interest rate was artificially low at the beginning, to attract potential customers (Adjustable Rate Mortgages). Financial institutions have found here a large sales market, just as customers are found in the inability to pay the bill when the real mortgage rates come into force.

In Canada, the market for such high-risk loans is much lower, mainly because of “safety net” of the banks have called credit insurance companies – which on one hand, ensure recovery of funds banks in case of default of the client, and on the other require a series of stringent criteria to grant the loan. Thus, in Canada, this kind of type loans are under 5% of total mortgage loans. When it comes to adjustable rate mortgages (initially, the rate is less, being readjusted at regular intervals), in Canada, customers are qualified and considering the variation of payments, which was not practiced in the U.S.. Mortgage lending policies in Canada are so much more cautious than in U.S.. Lately, many mortgage products were introduced in Canada in November 2008, which were produced in USA for a long time along. Real estate crisis has serious consequences for the American economy, which many analysts were expected to enter recession last year despite significant reductions in benchmark interest rate by the U.S. central bank (Fed).
All this bad news does not only affect U.S. but the world economy, which will be a sharp slowdown of growth rate. The main problem is the millions of American families who lose their homes after they have taken on mortgages whose interest rates have skyrocketed. The wave of mortgage prescriptions lead to worsening the situation of the property market and destroying entire neighborhoods, provided that the number of unsold homes on the stock market a full year totals. While politicians discuss how that might come to help those who are on the verge of losing housing, so far they have been very few concrete measures in this regard. All over America, last year there were 243,353 prescriptions mortgage, according to data issued by Real Trac. The latest victims of the effects of the increasing number of prescriptions the mortgage industry are the people who came to live in the street. The main factors that led to the slow decrease of U.S. real estate market prices are represented by lower mortgage, the subsidy from the state who buys a house first, but by reducing the number of forced execution.
But in present overseas real estate crisis shows more and more signs of improvement. Sales of new and old homes increased in the last four months, thus indicating the end of the worst real estate crisis. The data show that sales increased 2.9% to a 4.68 million annual rate, despite the increasing number of houses by 8.8% to 3.97 million, the highest value since November last year. The results indicate a stabilizing housing market and a confirmation of the forecast of the end of U.S. real estate recession.

Banking institutions are more carefully when choosing their customers, according to a series of strict criteria. Banks no longer extending credit to population so easy, but are more careful when it comes to security, such income derived by the applicant or advance.Credit institutions have become more demanding in terms of income taken into account when granting loans to the public, according to the same study. From this point of view, those who derive income from wages will be least affected by the new credit policy. Instead, people who have income from rents, pensions, royalties, management contract or a loan agent will get harder a mortgage.
This problem occurs because of the world crisis and because the population have already too much debts and the power of payment back the loan becomes smaller each day. Every month the number of debtors increases and more and more people lose their properties.
The new rules , already applied by some banks require the highest degree of lower indebtedness for people , but also the obligation to present a wage tax card for the previous year. In addition, implementation of new rules, superimposed on the global financial crisis, determine credit institutions to add new conditions such as prudential. Type security, the income, but also the advance are indicators that more and more banks take into account when granting loans.

If not time ago the banks accepted a large range of guarantees for mortgage loans, at present, they have become more selective, shows a recent study. Also other banks announced that no longer accept land as collateral. Exceptions are only for the built-in cities of the county, with funding not exceeding 50% of market value. Also the nationalized house or those based on leased land don’t make the object of a guarantee for obtaining a mortgage.
So if you want to buy a property and you don’t have the money it is harder now to get a loan and unfortunately you will have either to raise the amount of money that you need, which it may take a lifetime if you don’t have a big income, either to wait for the banks to “domesticate” the conditions of taking a mortgage. In both cases you will have to be patient and not make the imprudence of taking an impulsive decision and later to found yourself in the incapacity of paying your loan.

The legal mortgage takes birth if there are met some conditions:

-state legal mortgage over buildings officials responsible for handling public money;
- legal mortgage title of legatees with particular inheritance of real estate owned by the heirs;
-mortgage legally established as enforceable in the proceedings as enforcement of state debt as insurer
-mortgage legal-faction of the bank over the building constituted with the credit from the bank.

Conventional mortgage incurred through the agreement of the parties. It is valid by following background conditions and form required by law:

-capacity of the owner;
-ability to alienate;
-determine the exact property mortgaged and secured claims;
-contract in authentic form;
-take a mortgage inscriptions.

The second mortgage involves a contract between the parties and would allow the bankers to recover more quickly the money from the fund guarantee if the customer fails to pay the loan, while the first type of mortgage is required by law and requires that all aspects to be solved in court, making banks more difficult to recover the money.

The mortgage loan is a bank loan for the purchase, construction, renovation of homes, buying land or refinance loans with the same destination contracted from other banks. To get a mortgage you should have a warranty, represented by the mortgage on the building, bought a house or other building.
To obtain a credit-scoring is now paramount. This information is transformed into points, which further influences: the decision of approval / rejection, the loan approved, the advance required, the cost of credit (interest, fees), indebtedness, etc. coverage with guarantees. Scoring site, in addition to applicants and co debtors income (amount, source, etc.), destination and other loan rates to credit cards (credit, overdraft) or delay in payment, includes detailed information:
- Requesting personal data: marital status, number of family members, the last level of education completed, since it lives on as a current address and what (owner, tenant, with parents, etc.)
- Data on employment: the name of the employer, job categories, number of employees, job applicant, job title, age at current employment and total employment in work field.

All these data form the risk profile of the applicant, determined in obtaining financial approval for a loan. Because this scoring is a lot different now from one bank to another, the role of consultant officer / broker of credit is very important. Brokers credit, based on partnership agreements with banks in the portfolio, and together with their own simulators can choose the most convenient banking products without visiting those 10/15/20 banks and without supplementary cost of consulting other brokers.
What is the length of employment required?
Some banks require to have a minimum age of 6 months at work and for those who have income from independent activities shall accept a minimum one year old. Other banks require a minimum age of 3 months to work and work a total length of at least one year.

It is needed a life insurance?
If mortgage loans, all banks insurance requires the completion of the house.
At some banks, when you get a mortgage you also need a life insurance. Other banks offer free insurance and at others it is not mandatory.

Why it is needed to be insured
Insurance is a form of financial protection in case of accidents to people or other cases in which we cannot pay rates. For example, if the disease, unemployment, serious accidents resulting in death or disability, occur the person who obtained the loan will not be able to pay the rates. In these cases, the insurance company will handle repayment.

Banks were established many centuries ago. At first, activity was limited to banks. They dealt only with the preservation of their values which were assigned to them and the execution of payment orders from their customers. Form of organization and functioning of the banks was made by the Bank of Amsterdam in 1609 and then the Bank of England in 1694. Following a comprehensive process improvement and evolution of financial and banking activities , banks have a major impact on society. Once the evolution of banks, and organizational structure has undergone transformation and still continues to turn. In the first stage of the emergence of banks, the organization was based on authority and control, leading to a hierarchical design typical of industrial capitalism. During the time there was a big change, reaching matrix-type organization. In the modern state, the internal organization of the bank is of the network.

The organizational structure of the banks
Each bank is a legal person, realized as a banking company stock. The organizational structure of the banks which has operations in a country’s territorial consists of:
• Central bank;
• Branch county
• Subsidiaries (which are subordinate to branches) in some cities;
• Agencies that can be subordinated to subsidiaries or branches.
Branches, subsidiaries and agencies are operational units. They perform specific banking operations for banking companies regulated by law and running on the Management Board for approval of the concerned bank. Branches, subsidiaries and agencies working directly with clients, they can be both individuals and legal entities.

Banks, through their extensive involvement in economic and social life, is a special structural element in society, whose sound and efficient operation makes permanent and entire economic life. Good organization and operation of banks may be left at will, and the trade bank cannot be fully exercised freely as you can carry things for many professions and businesses. A disturbance as small banking business creates impediments for thousands of borrowers and create millions of depositors to panic. Thus, the banking system as a whole too, for reasons of solidarity and professional security defines precise rules for the conduct of banking profession and its organization in specific undertakings, banks and financial companies, rules whose observance is carefully monitored and controlled by special body.
Organization and management of company is established by banking association, in accordance with commercial law and banking law. Thus, any bank operating under rules of operation of an approved by the governing bodies and comprising at least: organizational structure, functions of each department and the relationship between them, the powers of branches and other establishments; powers risk committee, Management Committee of assets and liabilities, credit committee, the powers and responsibilities of managers, executives, heads of branches and other establishments and other persons who engage in financial and banking operations in the name and bank account.

From a point of view, there are some features of banking companies in relation to other companies, while the organizational level, banks are behaving like any other company . Thus, banks have a supreme driving (general meeting), the structure and ensure that current management (chairman, board of directors, steering committee) control their own bodies (internal audit committee), in accordance with some specific laws. Banking Act stipulates that governing entities operationally must obey rules and orders issued by the National Bank in areas related to monetary policy, credit, foreign exchange, payments, insurance and prudential banking supervision.

Mortgage is a real guarantee, serving to guarantee the obligations of a debtor against the creditor or a real property of his own heritage, namely legally designated for this purpose (mortgage does not require the debtor dispossession of property). Synthetic mortgage is a real guarantee, real estate, consisting of an real right accessory over a debtor’s property.

General characters of mortgage
Regardless of the kind of mortgage, the mortgage shall have the following general characters:

1. mortgage is a real right on immovable property which gives its holder the two attributes: the right track and right of preference;
2. mortgage is an accessory right, because the principal came and guarantees a right;
3. mortgage is a security estate, because it has as an object a real estate covered in the civil circuit;
4. mortgage is a security specialist, which means it can be established only on a building or buildings individually determined, and to secure a debt with a fixed value;
5.mortgage is indivisible, meaning that all affected property is mortgaged to guarantee the debt.

Conditions:
- Mortgage can be formed only by a notary act.
- Mortgage inscriptions are on the court in the territorial radius of mortgaged buildings where are located.
- There can be mortgaged only buildings (which is in the civil circuit) together with their accessories that are property by destination, and beneficial to the buildings.
- Mortgage must be specialized in a double aspect:
be determined on the property affected.
be determined in terms of amount of the claim.

Selling a property is a decision viewed with caution when it is imposed on a mortgage. With the bank, alienation is still possible. But there are some disadvantages for the seller and obvious some advantages for the buyer.
To alienate a house or an estate property with a licensed mortgage in favor of the bank, the owner needs an alienation address issued by the creditor financial institution. In that address, the issuer, meaning the bank should specify how the borrower has to pay from the credit and the account number in which the transfer should be done .After the buyer transferred that amount into the bank account, it shall issue a new address, this for cancellation of the mortgage, following that the seller directly collect the remaining amount and have it after his own will, while the buyer take possession of the house, which is free of duties. Generally, people who want to buy a property manifest reluctance if it is subject to a mortgage bank licensed in favor, although legally the procedure for cancellation of the mortgage is simple and safe.

A 10-20% lower price
A property (either land or apartment) that was purchased through a mortgage may be alienated by its contractor. If that credit is still ongoing, the sale can take place only with the consent of the lending bank. In terms of the seller, a first disadvantage in alienation of the mortgaged property is that paying the loan before the initial deadline, the owner must pay a fee in the form of penalties to the bank. Also, an aspect worth considering is that, in general, the price of real estate is sold to the existence of a mortgage that is lower than normal.

The difference can reach 10-20% of the amount that the seller could obtain on a normal trading situation. This is because most people interested in buying a mortgaged property are aware that the owner is unable to pay credit rates so that, often, provide him with a lower price than the market. In general, however, there are many deductions from buyers when it comes to buying a mortgaged property. Reluctance due to ignorance of the functioning of the banking system is the main cause in this respect.

The existence of a mortgage on a building in favor of a creditor is not an impediment to the successful sale transaction of the building that, for any of the parties involved. Things are simpler than we expect, important is to know the moments when the bank in its credit quality, will be involved in the completion of the transaction. If the buyer does not appeal to a mortgaged property loan for investment property to purchase the property, the bank will release its client (the seller) a valid waiver of the prohibition of alienation .

A necessary condition for granting it is, that the price obtained for the purchase of the property, to discharge all obligations under the credit agreement. Thus, those conditions should be stipulated on the pre contract or on the sale contract which have to be made.

Before signing the credit agreement you must ask not only for the general terms and conditions of the contract , but the specific terms and conditions of insurance policies. Thus, you get to know about them even at the time of the accident, which also happens often. Give high attention to exclusion clauses mentioned in the contract. They should be very clearly stated and easily understood. If they do not meet these criteria, clauses may be declared by the courts as unfair terms, and therefore null .

Insurance companies will offer different insurance policies with varying degrees of coverage, you must read the terms and conditions carefully. You must carefully watch exclusive clauses, especially those that cover accidents and loss of income. Usually unemployment, incapacity for work and death are covered by insurance. You must have all information regarding the terms and conditions of the insurance policy and must and shall issue an insurance contract and insurance policy, which must include all terms and conditions covered by insurance. You can ensure that you are the lender, co-borrower or guarantor for housing loan. Insurance cover depends on your age and professional situation. Maximum age for the benefit of doubt to ensure the contract varies, but generally is 65 years. Some contracts specify an age limit for insurance in case of disability . In case you exceed the age limit allowed it is the opportunity of an additional clause to extend the age limit to 70 years.

Types of insurance
Temporary disability insurance
If you become unable to work, the insurance company will pay the rates on your loan value and the period established by the bill, since you don’t receive another form of payment than the disease. Notice the definition of temporary incapacity for work: it can refer to the inability to practice your basic or any other profession.

Sickness insurance
Most insurance covers most major diseases such as heart attack, cancer, renal failure, stroke, organ transplantation and permanent total disability. However, such insurance may not be available to everyone because of occupation, health or family history. You should check the small print documents to any policies they conclude. For example, HIV or AIDS coverage is done only in certain situations.

Insurance in case of unemployment
Insurance contract may also provide, insurance for job loss. This insurance is very expensive and generally requires certain limits. With this assurance you can ensure only one effect of risk arising from unemployment, the incapacity to pay rates on a bank loan.

Insurance in case of death
If insurance contract is covering the risk of death, the insurer undertakes to pay the loan rates for you. But there are also more restrictive clauses that should therefore be very careful at the end of this insurance. Most policies do not cover death due to excessive consumption of alcohol or drugs. Also, it may not be insured if death occurs while an extreme sports practices. If your state of health is precarious certain causes of death may be excluded from the policy.

The cost of insurance premium is specified in the contract.
When you make a mortgage contract almost always you will be asked to close an insurance, which can be added to the total cost of credit. Always ask if the loan rates and payments include insurance premiums so you can see the real cost. If the creditor gives the possibility to conclude an insurance policy he suggested, be careful how much it is and compare it with other insurance policies. Insurance premium may be paid: annually, half yearly, quarterly or monthly.