Quote:
Originally Posted by Esel Mann
RPKESQ if you have a mortgage on a home/property you are still the owner.
The mortgage is simply a document stating that you the owner are using the home/property as collateral for the debt and permit the lender to place a lien on the home/property to protect the debt owed.
|
On some level of commonly used terminology you are correct (as was the mentat), but in terms of who has what actual ownership of that asset, you are not correct.
Again, if you own the home outright, there are very few ways of someone obtaining ownership against your will. With a mortgage, you always have the risk of repossession from the mortgage holder if you stop paying mortgage payment (same as rent to own). You not only lose the asset, but all the additional monies paid for taxes, loan fees, interest, insurance, maintenance, etc.
For years banks listed property as an asset to be counted even if there was a mortgage on them. This was commonly used to determine Net Worth of an individual, for example. This is quickly changing. Now any asset that you still owe money on is a liability (which is the correct position IMO) to most major banks. And is not counted in the plus column. Why should it be?