A mortgage is a transfer of an interest in real estate or immovable property. One person lends his or her property to another in exchange for money for a set period of time. The loan can be taken out on tangible immovable property. In the event of a repayment default, the person holding the mortgaged property may sell or use the property to make up for his loss. A mortgage is a type of loan used to purchase real estate, typically a house. The borrower (homebuyer) pledges the property as collateral for the loan, which means if they fail to repay the loan according to the agreed terms, the lender (usually a bank or mortgage company) can take possession of the property through a legal process known as foreclosure. The borrower repays the loan over a set period, usually with interest, until the full amount is paid off.