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
fee for the cost of a loan including interest and points. Points (1 point= 1% of the total loan) are advance charges for a mortgage, whereas interest in charge over the life of the ...
A sash window having two vertically moving sashes respectively offset by sash weights. Each sash closes a different part of the window. ...
An increase in land occurring from the withdrawal of a body of water. Normally, when reliction occurs, the increase in land area belongs to the individual having water rights in the area. ...
Everyone is aware of the perplexing complexities of a real estate transaction. Enter Opendoor, a company that aims to simplify this experience. If you're a house hunter, seller, real estate ...
Highly subjective term, usually an expression of monetary worth applied to a particular piece of real estate property. ...
Place where real estate is situated. The geographic location of property affects its value. For example, real estate in a good neighborhood is worth more. ...
Removal of a tenant from a portion of a rented or leased premise. ...
Housing projects specifically designed to meet the community needs of the increasing number of individuals who are largely retired, having no small children. Adult communities are found ...
In valuing real estate, substitution is the principle that the market value of a property can be relatively accurately estimated by determining market value of similar properties in the ...
Have a question or comment?
We're here to help.