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Loren
Loren, Attorney
Category: Legal
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Experience:  30 years experience representing clients.
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What is a recourse note

Customer Question

What is a recourse note
Submitted: 1 year ago.
Category: Legal
Expert:  Loren replied 1 year ago.

Good morning. I am Loren, a licensed attorney, and I look forward to assisting you this morning.

Expert:  Loren replied 1 year ago.

Secured debt can be with or without recourse.

Expert:  Loren replied 1 year ago.

Without recourse simply means that, upon default by the borrower, the forfeiture of the collateral is the sole remedy of the lender. If the collateral is insufficient to repay the outstanding debt the borrower has no further liability and the lender is just out of luck or "without recourse" to collect the deficiency from the non-recourse borrower.

Expert:  Loren replied 1 year ago.

Conversely, in debt with recourse, there is no such limitation and if the collateral is insufficient to repay the debt the borrower can be sued to pay the deficiency.

Expert:  Loren replied 1 year ago.

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