A Secured Debt is a loan where the creditor retains a security interest in an item of real or personal property such as a house or an automobile. If you fall behind on payments on this type of debt, the lender has the ability to repossess the property in order to mitigate their damages. It is important to remember that you could remain liable for any deficiency balance owing after the property has been repossessed and sold. Certain exceptions may apply and will depend on the exact nature of the security interest. The laws regarding home mortgages vary from state to state and the lenders rights generally depend on the terms of the mortgage and whether any other lenders have an interest in the Real Property. In these situations it is important to seek competent legal advice to protect your interests.