Lenders will be able to respond to borrowers with a counter offer to negotiate on the terms of the loans. Adjustable variables include: debt amount, interest rate, and duration.
When the loan is not paid back in time, lenders will have the option to foreclose the loan.
This means the collateral is seized by the lender and no longer belongs to the borrower. The borrower can keep the debt, but loses the right to reclaim their collateral if the borrowed amount and interest are not paid back in time.