Mortgaging Lending: Are Promises Meant To Be Broken?
August 30, 2009 by admin
Filed under Tourist Attractions
I shall return. This, arguably, is one of the most famous promises in world history. American General Douglas MacArthur made it after his fortress in the Philippines became the target of Japanese air attacks during World War II. MacArthur was then forced to flee to Australia. On March 20, 1942, MacArthur made his famous promise to return to the Philippines to continue helping to defend the islands. About two and a half years later, MacArthur proved that he did not just talk the talk. He walked the walk – literally! On October 20, 1944, about two and a half years after making his famous promise, MacArthur waded through the waters near Leyte Island in the Philippines.
Like MacArthur, you, too, made a promise when you borrowed from your mortgage lender. While this promise is not as historic, it is no less binding or serious. In fact, your home backs up the vow you make to your mortgage lender.
I Shall
In modern times, we rarely hear people use the word “shall” when they make a promise. Today, the word could make its user seem a little old-fashioned or even arrogant. But the word certainly makes one’s vow to keep a promise, seem absolute. Promising with the word “shall” is equivalent to someone saying “mark my words,” “my word is my bond,” or “my word is as good as gold.” The “shall” in mortgage lending is the collateral you put up to secure your loan. When you use the services of a mortgage lender, your collateral fortifies your promise to repay.
From Hens to Houses
What is collateral? Collateral can be as informal as holding onto our friends’ Michael Jordan rookie card or tissue box cover collection until they pay back money that is due. In a nutshell, collateral is a type of security to the lender, such as a mortgage lender. This is reserved for situations wherein the borrower neglects to pay back the loan taken out. Four forms of formal collateral are used in secured lending:
* business proceeds (in cash)
* intangibles (of which contract rights and accounts are two examples)
* paper (such as documents)
* trade goods (products)
What is special about the home mortgage that a mortgage lender provides is that the collateral and the asset being financed are the same object!.
Lending Without Collateral
What happens when borrowers of loans have no collateral? Instances like these sometimes arise when one does business with a mortgage lender.
In developing countries where many people lack collateral, microfinance and microlending have become a fad. Dr. Muhammad Yunus won a Nobel Prize in 2006 for his work in the field. He discovered in the 1970s that giving out small loans not only improved the lives of poor businesspeople, these loans were also returned with interest, and promptly! Microfinance is not a new concept. In fact, microlending may have existed since currency was invented. For example, Jonathan Swift, Irish author of “Gulliver’s Travels” in 1726 – on which a Disney cartoon was based – created his own microlending system. The amount and term of the loan was limited, and the interest rate was low. In the case of Swift’s system, the rate was 8%. While microlending is practical in developing countries, the higher cost of living in industrialized nations makes it necessary for a mortgage lender to require collateral.
Today, we rarely use the term “shall” when making verbal promises to our bosses, teachers, or friends. Still the saying that a person is as good as his or her word holds as true now as when MacArthur made his famous vow in 1942. So when we take out a mortgage from a mortgage lender, collaterals such as houses help ensure we strive to keep our end of the bargain.
Make Your Holiday Truly Special By Traveling Philippines
March 25, 2009 by admin
Filed under Tourist Attractions
Philippines is one of the most compelling and attracting tourist destinations not only in Asia but the whole world. It is an archipelago nation located in Southeast Asia and it is as charming a destination you can ever imagine.
The Philippine archipelago consists of 7,107 beautiful islands, spreading a total area of 300,000 sq km with Luzon, Visayas, and Mindanao constituting the main island groups in the country. Known for its scenic islands, exotic beaches, fascinating volcanoes, fantastic diving spots and elusive wildlife among many more attractions, the Philippines is a lovable place to visit. Philippines boasts of hundreds of seductive tourist destinations, making it a popular choice for nature lovers, honeymooners and adventure seekers from across the world.
Philippines is home to some of the most enchanting beaches in the world comprising the famous White Beach on Boracay Island, which is conferred the tag of the most beautiful tropical beach in the world. Cebu, which comes after the capital Manila for its popularity, possesses some of the most excellent diving spots in the world, making it a favorite destination for adventure seekers.
The islands of Panglao, Balicasag and Pamilacan in Bohol also have world-class diving spots. Bohol also has beautiful beaches which includes the famous Alona Beach at Panglao. The highly sought after Tall Volcano and the amazing Tall Lake at Tagaytay never fail to quench the thirst of its visitors for natural beauty.
Besides its unbelievable scenic beauty, Philippines has a lot more to fascinate its visitors. The cultural, historical and architectural heritages of the Philippines are set to enchant those who are interested in exploring the historical background of the nation. The beautiful colonial structures of Vigan in Ilocos and World War II markers of Manila are ever lasting heritage sites.
The Filipinos are generally energetic and relaxed people and choose to enjoy almost every occasion with great flourish. The lively and colorful festivals are major tourist interests in the Philippines. Philippines conducts numerous colorful festivals, celebrated across the year in all parts of the country.
Those who want to flex their muscles a bit will never leave Philippines disappointed. Philippines offers a compelling range of leisure and adventure activities such as scuba diving, snorkeling, hiking, trekking, and a rich diversity of water sports. The lovely beaches of Philippines gives you the perfect ambience to relax, sunbath, and numerous other exciting beach activities.
Filipinos are extremely hospitable people. Guests are often considered like royalty in Philippine households. This is revealed noticeably during fiestas when even absolute strangers are accepted and permitted to partake of the feast that most, if not all, households within the town arrange during the occasion. Quite often, this hospitality is mistaken. Some households allocate their complete savings on their fiesta offerings and sometimes are even indebted just to provide splendid food on their table. They use the next year compensating these debts and readying themselves for the next fiesta.
The country features an excellent blend of cultures; in the Philippines, you can witness the jelling of East and West cultures. The roots of the people in this nation mainly lie in Indonesia and Malaysia. You can also find tints of Chinese and Spanish elements as well. The American rule of the past and indulging with merchants and traders resulted in a rare blend of East and West. You will be able to find this in the appearance and character of the Filipinos, or people of the Philippines.
There is no question about the artistic versatility and scenic beauty of Philippines. You are now familiar with the diverse attractions available as well. It is up to you to ensure that your next trip is to this majestic country.
