What is the term for property liened by a lender to ensure payment of a loan?

The correct term for property liened by a lender to ensure payment of a loan is "Mortgage." A mortgage is a legal agreement in which a borrower pledges a property as collateral to secure the repayment of a loan. In this arrangement, if the borrower fails to meet their repayment obligations, the lender has the right to take possession of the property through foreclosure.

While the term "Collateral" refers to an asset that a borrower provides to a lender as security for a loan, it is broader and can encompass various types of property, not just real estate. "Security Interest" also describes the rights a lender has to the property if the loan is not repaid, but it is more of a legal concept rather than the specific term for the lien arrangement on real property. "Equity" represents the ownership value in the property after all liabilities are deducted, which doesn't directly relate to the loan security aspect.

In summary, the mortgage is specifically the legal instrument that secures the lender's interest in the property, ensuring that the loan is backed by tangible real estate.