What is a Mortgage?

A mortgage is a loan to finance the purchase of real estate, usually with a specified term, monthly payment and interest rate. With a mortgage, the borrower gives the lender a "lien" on the property as collateral for the loan. In the case of foreclosure, which can occur when the borrower has defaulted on payments, the bank has the legal right to evict the home's tenants and sell the house in order to settle the outstanding mortgage debt.


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