Hipotecálo

Hipotecálo is a financial term referring to the act of pledging a property as collateral for a loan. In essence, it means to mortgage something. The property in question, typically real estate such as a house or land, serves as security for the lender. If the borrower defaults on the loan payments, the lender has the legal right to repossess and sell the property to recover the outstanding debt. This process is fundamental to obtaining significant loans, particularly for purchasing property. The term originates from Spanish, where "hipoteca" means mortgage and "lo" is a pronoun referring to the object being mortgaged. Therefore, "hipotecálo" translates directly to "mortgage it." The act of hipotecarlo establishes a lien on the property, which is a legal claim that encumbers the title until the debt is fully repaid. This lien is usually recorded in public land records. The borrower retains possession and use of the property during the loan term, provided they meet their repayment obligations. Failure to do so triggers foreclosure proceedings, where the lender can legally seize and sell the property to satisfy the debt.