What states are non-recourse?

[LindaP777]

Just curious, what states are non-recourse when it comes to foreclosure? The only one I can think of is Florida. If yours is a non-recourse state, let me know. (We were just talking about this and I am curious.)

 

[dmiller12]

Alaska
Arizona
Arkansas
California
Colorado
District of Columbia (Washington DC)
Georgia
Hawaii
Idaho
Mississippi
Missouri
Montana (as long as non-judicial foreclosure is used)
Nevada - note that the lender CAN get a deficiency judgment
New Hampshire
Oregon
Tennessee
Texas (but even in a non-judicial foreclosure, the lender can pursue a deficiency judgment)
Virginia
Washington
West Virginia

I got this off of a real estate investment site but can't find the site to give credit. Sorry.

 

[LindaP777]

But in some places like California, it looks 1st mortages are non-recourse, but if a homeowner defaulted on a refinanced loan or get a 2nd mortgage, they can get deficiency judgement in those cases.

 

[FlyingRon]

I know what site yo got that off of and if you'd bothered reading the followup comments you'd know that the assertions are full of crap. At least half of those states listed ARE recourse states. Even some of them listed have bizarre weasel words saying that deficiency judgements are possible...which makes no sense if it is a 'walk away' state as they claim.

 

[JustKurt]

What exactly does "non recourse state" mean? Im just snooping to see if it applies to my situation.

Thanks!

 

[LindaP777]

What exactly does "non recourse state" mean? Im just snooping to see if it applies to my situation.

Thanks!

People often mistakenly assume a foreclosure means they walk away from their debt along with their house. In most states, it does not.

In simplistic terms; after a foreclosure, a bank can come after the person/people they gave a mortgage to, if the house sold for less than what was owed, creating a deficiency. It's called a "deficiency judgement". There are some (1?) states that do not allow a banks to pursue the deficiency judgements. Those states are "non-recourse". Florida, I believe, is a non-recourse state.

I will restate my question. What states are non-recourse when it comes to foreclosure?