Caveat loans are very fast loans which allows the borrower to receive money by using their real estate or fixed assets as the securities for the loans, real estate and fixed assets can includes housing, units, flats, office or lands. In simple terms, this means the borrower uses their real estate or fixed assets a promise to the lender that they are will repay the loans back before the deadline. And they are accepting the to risk their real estate to the lender, because if the borrower cannot complete the repayment before the deadline, the lender have the right to take their real estate and put them to auction to get the money the borrower still need to repay, but the borrower receive the reminder of the money back. But most of the time, people do not want the lender to put their real estate on auction, because usually the lender do not really care what price they sell the real estate for, they only want to claim their money back, so the final selling price will be much lower than what its market value should be. This is one of the risks of having caveat loans. But the benefit of it is that you can borrow money in a very short period of time, and you will have to be willing to accept the risk if you would like the money in such short period of time.
Caveat loans are very similar to having mortgages, because both are putting their real estate or fixed assets to the lender as security of the loans. However, the goal between the two is slightly different, mortgages are when you would like to purchase a property and do have enough money to pay the property off in one go, and the bank will pay off the property for you, but you will have to pay the bank back over the years, and the bank also have the right to take the property away from you if you do not pay the bank every month. But people who get mortgages, the main purpose are to receive the property while putting the property as security of the loans. Caveat loans works in a similar way, where the borrower put their property as security of the loans, but the main goal of the borrowers are to receive the money.
These are the differences between mortgage and caveat loans, and the definition of each of them, and both loans helps a lot of people in the world, as they are extremely common loans, that most people will have in their life.
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