In most cases, lenders take the physical property used as collateral from the borrower and liquidate the collateral until the loan is repaid in a lump sum.

Question

Quizplus · Accepted Answer

While lenders may take physical property as collateral, they typically sell the collateral to repay the loan rather than holding onto it until the borrower repays the full amount in a lump sum.

In Most Cases, Lenders Take the Physical Property Used as Collateral