Final answer:
The statement is true; a mortgage note payable indeed reflects an obligation in which real estate is pledged as collateral, guaranteeing the lender's right to seize and sell the property if the loan is not repaid.
Step-by-step explanation:
The statement is true; a mortgage note payable typically does reflect an obligation where real estate is pledged as collateral. In the context of a mortgage, collateral is the secured asset, typically the property being purchased, that a lender has the right to repossess and sell in the event that the borrower does not make the required loan repayments.
When a family takes out a 30-year mortgage to buy a house, they are entering into an agreement with the bank where the loan is an asset for the bank, and the family has a legal obligation to repay this loan over the stipulated period. It is worth noting that while the banks initially offer these home loans, they often sell them to other financial institutions in the secondary loan market.