most of us buy homes not on cash, while our homes are being paid on mortgage, who ownes the deed title?? the bank our the "home owner"??

The deed is in the name of the Buyer. The mortgage holder has a recorded lien on the property.

So you own the property, but if you read the mortgage contract the mortgage owner dictates what you can or can not do with the property.

Title doesn't affect the mortgage.You could transfer title 100 times to 100 different people and the debt of the mortgage would still be attatched to the property.(The exception of course is a new buyer or a homeowner getting refinanced that get's a new loan to pay off the old ones)If you were foreclosed on all liens except for the senoir mortgage,property taxes,and an irs lien would be wiped out,and some HOA liens would survive in some states.

but who has the physical actual deed, the bank or the owner of the house who is paying payments?

Depends. In my state, the homeowner has the physical deed unless he is purchasing it on a land contract. In that case, the noteholder (who may be the seller or someone else) has physical possession of the deed until the note is satisfied. (Land contract purchasers typically have worse credit, and this is a way of protecting the noteholder.)

In some states, the deed is held by a title company, who then sends it to the homeowner once the mortgage is satisfied.

If you are not sure how it is handled in your state, ask a real estate closing attorney.

What do you mean physical deed? You have the deed and the banck has a lien on yur property. You stop maiking you payments and the bank will forclouse your property.

You have a copy of the physical deed, but its just a piece of paper. The county recorder says who "owns" or at least has claims on the property. You will get the actual deed when all leins are satisfied on the property.

In upstate NY it is fairly common to receive a copy of the deed document at closing with the original being sent to the county for recording. Once it is recorded, sometimes as long as 6 or 8 weeks, the original is sent to the purchaser (or the purchaser's attorney to give to the purchaser).

thank you very much!