What Is the Difference Between a Caveat Loan and a Mortgage?
May 2, 2020What Is the caveat loans application process?
May 2, 2020An exit strategy refers to how the caveat loan will be repaid at the end of the agreed loan term. This is a mandatory requirement for any caveat loan.
Common exit strategies may include refinancing into a more structured loan, sale of property or assets, or receipt of a known lump-sum payment. Because caveat loans are short-term, the exit strategy must be realistic and achievable within the loan timeframe.