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
Ratification is typically required when an individual makes a decision. Still, they don’t have the legal authority to make it legally enforceable. In everyday discourse, ratification ...
The quality of life enjoyed by a person depending on factors such as spendable income, housing conditions, health and education. ...
Use of borrowed funds to enhance expected returns. It is anticipated that the investment will earn a return exceeding the after-tax cost of borrowing. ...
In regards to , in the matter of. Formal judicial method of entitling a matter before it. ...
Financial standing of a debtor as a basis to pay obligations. ...
Regular rental of property between the lessee and lessor for a fee. An operating lease does not satisfy the criteria for a capital lease. An example is renting an apartment. A lessee ...
Property held by an individual, such as furniture. ...
The term foraging comes from the old germanic language, which passed through Old French “fuerre” and “fourrage” and it means the search for wild food resources. ...
Self-employed contractor who may perform work on a structure such as residential or commercial property. ...
Have a question or comment?
We're here to help.