Non Recourse Loan

Sometimes called a dry mortgage, the non-recourse loan does not hold the borrower personally liable for the loan obligation. Rather, the loan holds the property and the ownership entity created by the borrower--i.e., corporation, partnership, limited liability company, etc.--directly responsible. In the case of a default, if the property and entity cannot adequately satisfy the sums due, the lender cannot pursue the borrowers personally. For more information, see the "Mortgage Deed and Promissory Note" article in the "Real Estate In-Depth" section.

Was this article helpful?

0 0
Real Estate 101

Real Estate 101

This book makes it easy to not only buy a home, but figure out everything that you need to do, even get a loan. In simple and easy to understand language, it talks about where you should buy a home, what to look for in a home, how to find a home, how to get an agent, how to get a mortgage and more. This is a step by step process that you, a new home buyer, can use to purchase a home.

Get My Free Ebook

Post a comment