Collateral

An assetAnything of monetary value owned by a person or company. Assets include real property, personal property, stocks, mutual funds, etc. that is pledged as securityThe property that will be given or pledged as collateral for a loan. for a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan agreement. In the case of a mortgageA loan using your home as collateral. In some states, the term mortgage is also used to describe the document you sign (to grant the lender a lien on your home). It also may be used to indicate the amount of money you borrow, with interest, to purchase your house. The amount of your mortgage often is the purchase price..., the collateral would be the house and real propertyLand and anything permanently affixed thereto — including buildings, fences, trees, and minerals..