Closings are held at a local title company and can be handled in person or by the mail. The mortgage or deed of trust that you own is simply a pledge of the property as security or collateral for the payment of the debt. Part of the risks of owning a note like this is that the collateral may go down in value. The other part of the risk is the effect that inflation has on you monthly income. Inflation Inflation constantly erodes the purchasing power of every dollar we own.
Inflation continues to compound upon itself year after year.
A lien is an encumbrance on a property. It is a claim on property for some obligation or debt. For example, a property tax lien. If such a lien is placed on the property because of delinquent taxes, your collateral or security of debt loses value. Insurance Property insurance protects the value of the property, which is your collateral, if it were damaged.