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
Situation in which a business debts exceed the fair market value of its assets. ...
Significant elevation of land. Narrow upward strip. Connection of edges between different sloping surfaces. ...
Document that has to be submitted to he SEC disclosing all relevant information of the new securities issue of a real estate company or limited partnership that will allow an investor to ...
Those parts of a condominium that are owned by all the unit owners. ...
Latin term meaning something in exchange for something else. For example, a person rushes through an order for another in return for having first choice in selecting a parcel of ...
Markets for long-term bonds and equity securities of real estate companies. ...
Right to use property in the absence of forcible eviction by another. Some state laws allow squatter's rights to convert to bona-fide title over time. For example, if it cannot be ...
The float has several meanings in the financial world and the real estate terminology. Typically, the float refers to the number of funds, represented by checks, that an institution or an ...
The process of entering a conveyance or mortgage instruments affecting the title to real property in a public registry. Recording instruments provide public notice to the whole world of ...
Have a question or comment?
We're here to help.