is a purchase money loan non recourse

waynerchs · Joined: 16 Jun 2008 Posts: 1 1.28 Dollars($)

I've read in California that purchase money loans for primary residence is non recourse. Meaning the lender can foreclose and not pursue any deficiency judgements. Is that the case in florida?

adonis · Posted: Mon Jun 16, 2008 8:35 pm Post subject:

Welcome Waynerchs,

You're right that in California purchase loans are non-recourse meaning you won't be asked for deficiency payment if your home is foreclosed and the sale price isn't enough to cover the loan balance. But in Florida, it's the opposite. Here you'll be asked to pay the deficiency if required.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Waynerchs,

Welcome to the forum.

I agree with Adonis that Florida is a not a non-recourse state. That means Florida law approves the lender to pursue for deficiency judgments. But I would suggest you to read through the mortgage documents carefully to check the terms and conditions. If the loan is non-recourse, then the lender may not come after you for the deficiency judgment.

Hope that helps and keep us posted.

Best of luck,
Larry

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