"Bob Ward" wrote in message
...
On Fri, 16 Jul 2004 03:04:24 -0600, "Timm Simpkins"
wrote:


The lender is actually the owner of the house, but by contract they
cannot
do anything unless the buyer breaks their contract. Once the contract is
fulfilled the buyer owns the house "outright," which gives little extra
legal latitude over a person who still owes money to a bank. The bank,
unlike the government, cannot legally take a home from you or make any
changes to that home without you breaking the contract.


OK, professor - now explain second mortgages. How does one borrow
additional money against an unowned asset?

If you have ever gotten a mortgage on a house, you'll notice lenders lend in
stages, there is a primary lender, who gets the money first, and if there
are leftovers any subsequent lenders get their money later. They
essentially become co-owners with seniority rankings.