Chattel Mortgage

A chattel mortgage is a type of loan where a movable personal asset, such as equipment or vehicles, is used as collateral instead of real estate. Unlike traditional mortgages secured by immovable property, chattel mortgages are used for financing personal property that can be easily transferred. The borrower retains possession of the asset while the lender holds a security interest in it. If the borrower defaults, the lender can repossess the asset. 

A loan management software can help track the status of chattel mortgages, ensuring proper monitoring of collateral and payments.