undersecured claim

Definition of "undersecured claim"
  1. A claim in which the collateral's worth is less than the owed debt
How to use "undersecured claim" in a sentence
  1. The mortgage on the house was an undersecured claim as the house's market value was lower than the remaining mortgage balance.
  2. Bob filed for bankruptcy and his car loan turned into an undersecured claim since the car's value was lower than the amount he still owed.
  3. After the market crash, many investors faced undersecured claims as the properties secured were no longer valuable enough to cover the loan amount.

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