What is a mortgage?

Welcome to A2K! Hope that this will help!

http://www.howstuffworks.com/mortgage.htm

Basically, it's you borrowing money against your house (aka a Lien). There' are different types of mortgages, such as a First and Second mortgage.

The difference, the company that holds the first mortgage (which is usually the largest loan against your house), has priority over the Second mortgage and any other liens against your home.
So, if you happen to go into foreclosure, that first mortgage holder bascially is assured they will get their money (the amount you borrowed from them) first when they sell it to someone else.

Once you go through a foreclosue, it becomes increasingly difficult to borrow money in the future to buy a new home.
It's possible after a year, but you'll end up paying a very high rate. Plus, if you don't put at least 20% down, your mortgage insurance will be through the roof.