What does Collateral mean?

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.

Related Terms

Growing-Equity Mortgage Contingency Listing Boundary Building Restrictions Add-On Interest Graduated-Payment Mortgage (GPM) Agreed Boundary Two-Step Mortgage Effective Gross Income Contract of Sale Common-Interest Development Commitment Commencement Date Blue Sky Laws Junior Mortgage Percentage Lease (Retail Only) Production Home Interest Rate