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Categories: Economics & Finance
Mortgage loans are one variety of a secured loan. In this type of secured loan, the house itself acts as collateral. If borrowers default on their loan, their bank or mortgage lender can take possession of their home. This is what happens in a housing foreclosure. The bank or lender is then free to sell the house to another buyer as it sees fit.
(Read more: What Is the Difference Between a Secured Loan and a Mortgage? | eHow http://www.ehow.com/about_6131063_difference-between-secured-loan-mortgage_.html#ixzz2TlFQhpH4)
Synonyms:
collateral
