What do you mean by Caveat Loans?

Loansone05 Apr, 2023Finance

A caveat loan is a type of funding in which repayment of the loan is ?secured? by the borrower providing the lender with an interest in the property. Private lenders prefer to offer caveat loans because they provide a convenient and quick mechanism for protecting the interests of a lender/mortgage borrower without consulting a third party. A caveat is different from a 1st mortgage and a second mortgage. The main difference lies in the rights of the parties recorded on title.