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In most cases, yes.

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15y ago

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When real property is used as collateral for a loan what does the lender do?

When real property is used as collateral for a loan, the lender typically places a lien on the property, securing their interest in the event of default. This means that if the borrower fails to repay the loan, the lender has the right to foreclose on the property and sell it to recover the owed amount. Additionally, the lender may require an appraisal to determine the property's value and ensure it sufficiently covers the loan amount.


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The amount of a deposit refers to the sum of money that an individual or entity places into a bank account or financial institution for safekeeping. This can vary widely depending on the purpose, such as opening a savings account, securing a loan, or renting property. Deposits can be subject to minimum requirements set by the institution, and they may earn interest over time if placed in interest-bearing accounts.


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What