Question

f a lender is to repossess or bring about the sale of a property if the borrower defaults on the mortgage loan, the lender is said to have a ________ in the real estate.A) Freehold interest

Answer 1

Answer: Secured Interest

Step-by-step explanation:

A secured interest is the claim or right a lender has legally to be able to reclaim, collect or put for the sale the collateral if they refuse to pay back that which they borrowed.

A secured interest is a property interest which means the collateral in question is a property which could be a house or a piece of real estate that the borrower owns which was used to secure the loan.

A bank is an example of a financial institution that makes use of a secured loan.

Answer 2

Secured interest

Step-by-step explanation:

Secured interest - refers to the legal agreement where the borrower gives the lender a security interest to obtain a loan and agrees to the condition that if he stops making loan payment then lender has the right to repossess the property and even can sell it.

Secured interest is beneficial for the lenders since it mitigates the associated risks of non-payment

Secured interest is common for loans involving mortgages, car loans, business loans, etc.