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
collateral
credit
interest
explain which is correct
1 answer
Collateral is the best term to describe Joan's house in this situation because it is essentially serving as security for the mortgage loan from the bank. If Joan is unable to pay the mortgage, the bank can take the house as collateral to recover their losses.