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advantageappraisals · Joined: 11 Nov 2009 Posts: 7 3.12 Dollars($)

If my Mortgage loan is a non recourse loan, can I still be sued for the loan amount if I foreclose on the property?

savior70 · Posted: Thu Feb 11, 2010 3:19 am Post subject:

Hi advantage,

As far as I'm aware of, non-recourse loans do not allow the lender to sue the borrower for the deficiency. Such loans are secured by the value of the property. If the value of the property is less than the amount owed on it, the lender will not have any right to come after your other assets to collect the deficiency.

Guest

I just keep hearing that after foreclosure the banks sells you debt to a debt collector and then they can sue you for the amount or the bank itself will sue.

jenkin7 · Posted: Fri Feb 12, 2010 12:15 am Post subject:

Hi advantage,

If it's a non-recourse loan, the lender will not be able to sue you. When the lender offers you a non-recourse loan, he actually agrees to suffer the loss in case you default on the loan and the property sells for less than the outstanding loan amount. They can neither sell your debt to a debt collector nor can they sue you for the difference between the sale price of the property and the amount of loan owed against it.

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can I be sued for the loan amount shuld I foreclose on the property?

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