secured interest

A secured interest is a legal right a lender has in a borrower’s property or assets as collateral for a loan. If the borrower fails to repay the loan as agreed, the lender can seize or sell that property to recover the debt. This arrangement reduces the risk for the lender, often leading to better loan terms for the borrower. Secured interests are common with mortgages (where the house is the collateral) or car loans. Essentially, it's a formal way for lenders to protect their investment by having a claim on specific property until the debt is fully paid.