Recourse Loan
Definition of "Recourse loan"
A loan whereby the lender, in the event of a default, has recourse beyond the collateral pledged to initially secure it. For example, John gave Brian a $50,000 recourse loan using Brian's house as collateral. When John defaulted on the loan, he only had $25,000 of equity remaining after the property was foreclosed upon by the mortgagee of a first mortgage coupled with depressed real estate market conditions. Under the terms of the recourse loan, John has recourse to Brian's other assets to recover the principal.
Popular Real Estate Terms
The meaning of a disclosure statement is a legal document signed by both parties, the lender and the borrower or buyer. This statement outlines the terms and conditions, the potential ...
Oral or written contract that is not enforceable by the judicial system. Examples are contracts with minors, fraudulent agreements and contracts that exceed the statute of limitations. ...
The abstract of judgment definition is best explained as a written summary of the judgment passed by a court. This abstract of judgment includes the amount of money the losing party of a ...
Securities supported by a pool of mortgages. The principal and interest are due monthly in the mortgages and are passed through to the investors who bought the pool. ...
The geographic moving of an individual from one region to another usually because of a change in employment. Relocation normally involves the complete moving of the individual's ...
Device that places the ownership of real property with one or more trustees for security until the loan is paid by the debtor. It is used in place of a conventional mortgage contract in ...
Estimated value of property after a specified time period. ...
Building or other structure used to receive, hold, and issue products and other goods for a fee. A warehouse is a commercial property typically located in an industrial area. ...
Regulation of the Securities and Exchange Commission (SEC) establishing the criteria to avoid a private offering. For example, John wants to sell shares in an apartment house to several ...
Have a question or comment?
We're here to help.