The best description of Joan's house in this context is collateral. Collateral refers to an asset that a borrower offers to a lender to secure a loan, and in the case of a mortgage, the house itself serves as collateral for the loan. If the borrower fails to make payments, the lender can take possession of the property.
If Joan is unable to pay her mortgage, the bank may take her house away from her. Which of the following best describes Joan’s house? (1 point)
Responses
bankruptcy
bankruptcy
collateral
collateral
credit
credit
interest
1 answer