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
Losses arising from damage to or destruction of property. ...
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Business entity providing water services in a particular locality. ...
The imposition or collection, usually by legal or governmental authority, of an assessment of a specified amount. An example is a tax assessment on real estate. ...
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Insurance affording protection against losses due to damage to or destruction of property or contents therein. Insurance protects assets and any future income thereon from loss, such as a ...
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