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Real Estate Glossary

What is Collateral?

This is property or assets that are pledged as security for a loan or other obligation. In the context of real estate, collateral might include things like a mortgage or a lien on a property. If the borrower fails to fulfill their obligations under the loan or other agreement, the lender has the right to seize the collateral in order to recover the outstanding debt.

Artur
Real Estate Assistant