_________________ includes the real property that backs the mortgage loan.

Question

Quizplus · Accepted Answer

Collateral refers to the asset that a borrower offers to a lender to secure a loan. In the case of a mortgage loan, the real property (house or land) being purchased or refinanced serves as the collateral for the loan. If the borrower fails to repay the loan according to the terms agreed upon, the lender has the right to seize the collateral (through foreclosure) to recover the owed amount.

_________________ Includes the Real Property That Backs the Mortgage Loan