01
A secured loan is backed by collateral that a lender can take or pursue if the borrower does not repay as agreed.
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02
Common secured consumer debts include mortgages and auto loans, where the home or vehicle generally serves as collateral.
supported03
If collateral is taken and sold for less than the amount owed, a borrower may still be responsible for a remaining deficiency balance depending on the loan and applicable law.
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