Chattel mortgage

A chattel mortgage is a lien on the personal property of a borrower. Chattel mortgages are commonly employed when a consumer buys a more expensive item on credit, such as an automobile or household appliance. If the borrower cannot pay the lender on a timely basis, the lender can repossess the property. In many legal jurisdictions, chattel mortgages must be publicly registered, so that other lenders will not attempt to use the same assets as collateral.