Property that is pledged to the lender in the event that a borrower cannot make his or her debt payment is called
A)collateral.
B)points.
C)interest.
D)good faith money.

Question

Quizplus · Accepted Answer

Collateral refers to the property or asset pledged to a lender as security for a loan. If the borrower fails to make their debt payment, the lender can seize the collateral to recoup some or all of their losses. Points refer to a fee paid upfront by the borrower to the lender, usually to lower the interest rate on a loan. Interest refers to the cost of borrowing money, usually expressed as a percentage of the total loan amount. Good faith money is a deposit made by a buyer to show their commitment to purchasing a property.

Property That Is Pledged to the Lender in the Event