Partially secured debt

Partially secured debt – in terms of Contracts Law, this legal phrase refers to a debt, which has been secured with a mortgage on real estates, or a pledge of movable properties. But the market value of the secured assets of the debtor is less than the actual amount of the debt. For example, you obtain a bank loan and secure it with a mortgage on your house, but your house already costs on the market twice less than the money you have borrowed.

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