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How do you know if your mortgage loan is a non recourse loan or recourse loan?
Wiki User
∙ 16y ago
Good question, I have been looking for an exact answer my self. I have learned from my searches:
Generally a note is an obligation to pay and must be paid in full. So, unless a note is explicitly non-recourse, the creditor can seek any of debtor's property for payment (subject to bankruptcy limitations). The general rule is that note secured by mortgages on property are recourse loans. The major exception comes from the antideficiency statues, common in the western states, that apply generally to mortgages securing loans on personal residences.
Wiki User
∙ 16y ago
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What happens if you move and have a reverse mortgage?
Just pay off the reverse mortgage just as any other loan. If there is negative equity you can leave the home to the lender who will take the loss. A reverse mortgage is a non recourse loan, meaning the lender does not have personal recourse against the borrowers if there is negative equity in the home.
Is NJ a non recourse mortgage state?
no
If you default on a rental property mortgage loan can the mortgage company go after your assets?
That depends on the state, and whether the financing was "non-recourse". The process you want to find out about is known as a "deficiency judgment".
Is Florida a non recourse loan state.?
Florida happens to be a recourse state.
Is California a non recourse debt state?
California is a non recourse state for your first mortgage. Be aware any form of second mortgage you will still be liable for.You may also be liable on the first mortgage if you have refinanced your original purchase mortgage.
Is Maine a non recourse state for mortgage default?
Yes, Maine is considered to be a non-recourse state for mortgage default. A non- recourse means that if you default on paying your mortgage, the government can take your home from you.
What happens if you move and have a reverse mortgage?
Just pay off the reverse mortgage just as any other loan. If there is negative equity you can leave the home to the lender who will take the loss. A reverse mortgage is a non recourse loan, meaning the lender does not have personal recourse against the borrowers if there is negative equity in the home.
Is a car loan considered recourse or non-recourse debt?
I think is non recourse debt
Is NJ a non recourse mortgage state?
no
If you default on a rental property mortgage loan can the mortgage company go after your assets?
That depends on the state, and whether the financing was "non-recourse". The process you want to find out about is known as a "deficiency judgment".
Is Florida a non recourse loan state.?
Florida happens to be a recourse state.
Is California a non recourse debt state?
California is a non recourse state for your first mortgage. Be aware any form of second mortgage you will still be liable for.You may also be liable on the first mortgage if you have refinanced your original purchase mortgage.
What is recourse funding?
Recourse funding is a type of loan for which collateral is placed. The difference between recourse and non-recourse funding is that in recourse funding, if the collateral sells for less than the amount left on the loan, the lender can go after other assets. In non-recourse funding, the lender would have to absorb the loss.
In California how can you determine whether your mortgage loan is a non recourse loan or a recourse loan?
http://www.sandiegopredatorylending.com/ "The big mistake homeowners make is turning a "non-recourse" second loan into a "recourse" loan by refinancing it. A non-recourse loan is a loan that the bank can only look to their secured interest. So how is a second mortgage a non-recourse loan? Simple, it was "purchase money" for your home. A purchase money loan is one where the money went from the lender, to escrow, and then to the seller or to pay purchase closing costs. In California purchase money loans made on your home (note: not second home or investment properties) are non-recourse. It's simple as that." Also, it's California state law. It may not be explicitly written in the loan documents. Check out California Code of Civil procedure section 580b: http://www.legaltips.org/california/california_code_of_civil_procedure/577-582.5.aspx " 580b. No deficiency judgment shall lie in any event after a sale of real property or an estate for years therein for failure of the purchaser to complete his or her contract of sale, or under a deed of trust or mortgage given to the vendor to secure payment of the balance of the purchase price of that real property or estate for years therein, or under a deed of trust or mortgage on a dwelling for not more than four families given to a lender to secure repayment of a loan which was in fact used to pay all or part of the purchase price of that dwelling occupied, entirely or in part, by the purchaser. Where both a chattel mortgage and a deed of trust or mortgage have been given to secure payment of the balance of the combined purchase price of both real and personal property, no deficiency judgment shall lie at any time under any one thereof if no deficiency judgment would lie under the deed of trust or mortgage on the real property" or estate for years therein.
Are motorhome loans recourse or non-recourse in California?
The one-action rule that makes California a non-recourse state only applies to real estate mortgage loans. While some motorhome owners reside in their vehicles and may even claim them as a residence for tax purposes, they are not real property and the loans against them are not mortgage loans. The loan you would have for a motorhome is either going to be a traditional vehicle loan or a specialty vehicle loan, and is therefore subject to the laws governing those loan types. Generally speaking a lender may pursue the borrower for any deficiency.
What is the purpose of non comforting loans?
There isn't a purpose for a non comforting loan, because a non comforting loan does not exist. A non conforming loan means a residential mortgage that isn't set by the guidelines of the Federal National Mortgage Association.
If you foreclose on your condo will the bank come after you for payments?
if u live in a judicial state, the bank can come after you for the 2nd mortgage only. Fla is a judicial state, Va is not if the trustee (the person authorized to conduct the foreclosure) sells your condo via auction for less than the full amt of the loan, the bank cannot pursue a deficiency judgment also, check your original "note" on the mortgage and see if it is a recourse or non recourse loan . If you do not have the original note, request it from the lender. This is the one that has everyone's signatures including notary public. The with or without recourse will appear on the last page next to the signatures A non recourse loan will exempt you from personal liabilities, plus will prevent you from having to report the amt from the 1099C as taxable income.
