When using property as collateral for a mortgage, the property being purchased (or another owned property) is pledged as security for the loan. The lender holds a lien on the property, meaning if the borrower fails to make payments, the lender can foreclose, seize, and sell the property to recover the unpaid loan amount. The mortgage agreement outlines the loan amount, interest rate, ... https://mortgageloanapplyonline.com/