What is the difference between Caveat Loans & Mortgage Loans?

What Is the tax debt loans application process?
April 23, 2020
How are caveats used for fast loan settlements?
May 2, 2020
What Is the tax debt loans application process?
April 23, 2020
How are caveats used for fast loan settlements?
May 2, 2020

A caveat loan is a secured business loan using a registered caveat against real estate as security. Hence, the difference between a caveat loan and a mortgaged loan is the type of security registration. As such:

  • Firstly, a caveat expresses only a financial interest in the property with minimal recovery powers. Therefore, a caveat does not give the ability to sell the property and recover monies owed.
  • Secondly, a first or second mortgage gives the lender recovery powers in the event of a default.