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Collateral Mortgage is one in which property, real or personal, is promised as a security for getting a loan.
Features of Collateral Mortgage:
- The money which is borrowed, can be used to buy a property or for another purpose such as home renovation or for a vacation.
- It is a kind of mortgage which secures a loan by way of a promissory note.
For Example, Tiger Woods wanted to take a loan of $200,000 for his house renovation by collateral mortgage, so he has kept his house as collateral by signing a promissory note. Now his house is considered as collateral for the loan, and the house can be taken back from Jackson if the loan is not repaid. |
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Copyright © 2008 | Dream Home Financing LLC |
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Dream Home Financing is a marketing company that provides mortgage related information. Dream Home Financing does not arrange for or originate loans. The request quote and quick application pages, when completed will be sent to third party lenders for consideration.
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