A mortgage is a legal agreement between a borrower (sometimes called a mortgagor) and a lender (or mortgagee). In exchange for advancing money to the borrower, the lender charges interest. The borrower puts up real estate as security (also called llateral) for the loan. If the borrower fails to repay the lender arding to the terms of the loan (which is called default), the lender can foreclose, taking and selling the property to pay off the loan.
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