Mortgage Advisors

mortgage advice

Non-recourse Mortgage

A non-recourse mortgage is a home loan for which the borrower can never owe more than the home's value at the time the loan is repaid. A non-recourse loan is a debt that is secured by a pledge of collateral (usually real property), for which the borrower is not personally liable. The lender can seize the collateral, should the borrower default, but the lender can only recover the collateral. If the property's value is not enough to cover the outstanding balance of the loan, the lender will lose the difference. Non-recourse debt is generally limited to 80% or 90% loan to value ratios, so the property provides over collateralization of the actual loan.