Common Contracts
1 similar Collateral Loan Agreement contracts
Collateral loan agreement formCollateral Loan Agreement • June 27th, 2021
Lenders typically want some guarantee they will get back the money they provide to borrowers, and that is why they ask for collateral. Collateral is an asset of value that the lender can grab and sell if you fail to repay the debt as promised. Some financial institutions may require certain kinds of collateral -- such as real estate or cars -- for the type of loan they are providing. But for the most part, lenders want collateral that is likely to appreciate in value over time and will not be too much of a hassle to liquidate if need be. Real estate collateral is very near and dear to the hearts of many lenders. Financial institutions love it when borrowers use property to guarantee a loan because it cannot be moved. The borrower can't decide to skip town and relocate a house in the middle of the night. Mortgage lenders require that the house a borrower is either purchasing or borrowing money against be collateral for the mortgage loan. Mortgage lenders usually will not accept other ty
