Sometimes, you might have your eyes set on your dream house, but due to your financials, you might not be able to buy it. In such cases, a mortgage might be your best option. A mortgage allows you to make really large real estate purchases without having to pay the entire price of the house upfront. Over many years, the borrower pays tiny installments of the loan with interest, until he has fully repaid the loan+interest amount. If in any case, you fail to pay your installment, the lender can foreclose,

This means that the lender can evict the homeowner and sell the house to make up for the amount that is remaining. A mortgage can thus be seen as a “claim on a property,” but the claim is only valid as long as you keep paying the installments. In case you default in any way from paying, your claim on that house can be revoked completely. The claim is then transferred back to the bank/lender.