When and why did banks start owning houses and land? When did mortgages start?
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In the U.S. banks don’t own houses, home owners own houses. A mortgage is a loan to buy the house, and the loan gives the bank special abilities like being able to take the house (foreclose on it), if the owner doesn’t pay their mortgage. But the bank doesn’t own the house just like the credit card company doesn’t own the TV you buy on it. If you buy a house all the important aspects of ownership; new construction, maintenance, value of appreciation if the home’s value goes up, belong to the home owner. Even if the home owner stops paying their mortgage the bank can only take the home, sell it and take back the money that they’re owed and any expenses from the sale. The left over money, if there is any, goes back to the home owner.
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