What is a legal document that pledges a property to the lender as security for payment of a debt?

A mortgage is a legal document that serves as a pledge of a property to a lender as security for the repayment of a debt. When a borrower secures a loan to purchase real estate, the mortgage establishes a lien on the property, allowing the lender to take possession of the property through foreclosure if the borrower fails to make the required payments. This instrument specifically outlines the terms of the loan, the responsibilities of the borrower, and what happens in the event of default.

In contrast, a trust deed also creates a security interest in the property, but it involves a third party known as a trustee and is used primarily in certain states, serving a similar function as a mortgage. A lease agreement pertains to the rental of property and does not create a lien on the property but instead establishes terms between a lessor and a lessee. A loan contract refers to the agreement detailing the loan's terms, but it does not include the pledge of the property itself as security. Thus, the mortgage is clearly the correct choice as it directly addresses the question of security for a debt through a property pledge.