What are recourse loans?

The difference between recourse and non-recourse loans in California A home loan or mortgage is secured by the property. A recourse loan is a loan under which the bank could both foreclosure AND sue the homeowner for the balance due (deficiency) that remained after a foreclosure was re-sold. In some states, short sales are also...

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What are deficiency judgments?

Deficiency judgments are legal obligations to pay after a court proceeding. They arise when a person fails to repay the entire amount due on a promissory note. This is, of course, common after the foreclosure of a home in today’s real estate climate, because foreclosed homes typically do not sell for enough to cover the...

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