Real estate loan – this legal term finds usage within the area of Law of Contracts. It refers to any credit agreement, in which the released loan has been secured. A security could be an established mortgage on the real estate of the debtor. The mortgage benefits their creditors. In practice, banks use the real estate loans as a crediting method. Where to release money for buying a home, they request to set a mortgage on it during the term of the loan. So if the debtor stops paying the credit installments, then the bank can bring the mortgaged home to a public auction. And then sell it via the bailiff in order to collect their debt. Corporate entities also use to obtain real estate loans for getting a fresh case for their business. They usually set up a mortgage on their own properties (offices, warehouses, factories, etc.) as a security for the loan.
