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Recourse or non-recourse loan?

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noname69

Junior Member
If there is only 1 lender and the lender's only option for collecting money on a mortgage in default is through the funds received in a non-judicial forclosure, would that loan be considered a non-recourse loan? Note that the lender cannot seek a judicial forclosure nor can they come after the borrower for a defiency after a foreclosure.
 


noname69

Junior Member
I'm trying to get a general understanding of what determines recourse and non recourse. If a lender's financial recovery to a loan is limited to the property it secures would the loan be considered a non recourse loan?

Nobody was asked to do homework. You are under no obligation to reply if you don't know the answer! What state I'm in is irrelevant to the question but if it helps, consider that both types of loans are valid in that state.
 

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