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Conditional conveyance of property as security for the repayment of a loan. A mortgage is a device used to create a lien on real estate by contract. The mortgage is an instrument that the borrower (called the mortgagor) uses to pledge real property to the lender (called the mortgagee) as security for a debt, also called hypothecation. Loan: A sum of money given to an individual with the intent that it is to be repaid at some future date along with any agreed upon interest.
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