What’s a Recourse Loan?

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San Mateo Home Sellers Are At Risk

Yesterday I said that sellers are at risk whether they have a recourse loan or not. You ask: But what’s a recourse loan?

Recourse Loan vs Non-Recourse Loan

A non-recourse loan is the type of loan you get when you purchase your home. The bank has no recourse to go after that seller when they do not pay the loan off in full. The bank can foreclose on the house but they cannot sue for other assets.

If you’ve refinanced you likely have a recourse loan. To be sure check your note.

Now vs Then

In the past very few banks have pursued sellers for the loss they’ve suffered; but don’t count on that anymore.

California law hasn’t been tested. Banks and the companies who are now buying those short-sale loans are going after sellers – recourse loan or not.

Thanks for reading the San Mateo Real Estate Blog.

Vicki Moore, Realtor
Alain Pinel Realtors, specializing in San Mateo, CA Real Estate.

Need real estate help?
Contact me at 650.888.9268 or Vicki[@]CallVicki.com.

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Vicki Moore About Vicki Moore

RE/MAX Star Properties
282 Redwood Shores Parkway
Redwood Shores, CA 94065

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