Mortgaged

Mortgaged means to pledge a property, typically real estate, as security for a loan. It legally transfers the right of ownership to the lender (mortgagee) until the debt is repaid. This arrangement allows individuals and businesses to borrow significant sums to purchase assets like homes, while the lender holds a claim on the property in case of default. The borrower (mortgagor) retains possession and use of the property as long as they adhere to the loan's terms. Failure to repay the loan can result in foreclosure, where the lender takes possession of the property to recover the debt. The mortgage serves as collateral for the loan.

Mortgaged meaning with examples

• The young couple finally mortaged their dream house. They worked hard to secure the loan. With the loan in place, they could start on their long-term plan. They happily accepted all the loan paperwork to turn their vision into reality, looking forward to the future they were planning.
• Before launching the new business venture, the entrepreneurs decided to mortgage the original property to ensure they had the needed capital. They used a mortgage to provide the funds they would need for equipment. It allowed them to get a reasonable rate. The risk was considered high; if things failed, they knew what they stood to lose.
• After struggling for years, the farmer had to mortgage his farmland to pay off some significant debt. He hated that he had to go into debt and considered other ideas. He worked closely with the bank to find a reasonable payback strategy. He used the money to cover past-due bills, hoping things would change.
• After a significant downturn, the property owner was forced to mortgage several of her properties to save her investment firm from closing. It allowed her company to keep their doors open. She focused on keeping all parties in agreement and kept the process as smooth as possible. She was relieved when she finally had all paperwork complete.