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Define Collateral in Real Estate

Collateral: 

"Collateral" in real estate means something of value that is pledged as security for a loan.

Example: 

For example, when you take out a mortgage to buy a house, the house itself is the collateral. This means that if you don't make your mortgage payments, the bank can take possession of the house to recover the money it loaned you.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

When you buy a house, you'll likely need a loan,
To pay for the home where you'll soon make your own.
But the bank needs some security, you see,
To make sure that you'll pay them back, it's a guarantee.

That's where collateral comes into play,
It's something you give to the bank, to make their day.
For a house, it's the house itself that's the key,
If you don't pay your loan, the bank can take it from thee.

So remember when buying, it's important to know,
That collateral's something that can help you grow.
Just make sure to pay on time, or you might lose your place,
And that's no fun for anyone, not a single face.