I'm confused about how hard money loans work - need a business loan

I'm confused about how hard money loans work. I know that a hard money loan is a type of asset based loan which is secured on real estate property and that they are issued by private investors. What I wanted to know is what happens when you default on these loan. I am not planning to default but I just wanted to know what happens when you default on a hard money loan. Also is the asset taken away when you cant pay the loan back? Finally because hard money loans are asset based is the APR interest rate cheaper? Look forward to some clarification on how how hard money loans work! Thanks

A hard money loan is a asset backed loan where the borrowers receives money but the loan is secured on real estate property. These hard money loans are available from Private Investors and Private Loan Companies. Because the loans are higher risk compared to commercial or residential property loans the interest rates are higher. Hard money loans also have a shorter duration (few months) compared to commercial and residential property loans. Hard money loans are used when the borrower has bad credit, arrears or when foreclosure is occurring.

A Hard Money Loan usually offers 65% of the property loan value. You might receive more money if you have good credit and income. When you default on a hard money loan the property is at risk and could be taken away. Hard money loans will not have a lower APR just because is has security, because the risk is higher the APR will be higher regardless of the property. The property just gives you a better chance of being approved for the loan.