How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31012
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Real Estate Law Question Here...
Roger is online now
A new question is answered every 9 seconds

We live in California and have 2 rental properties in

Customer Question

We live in California and have 2 rental properties in Georgia that we own with another family member. Where do we look in our loan documents to know if we have recourse or non-recourse loans? Also wondering, if we have non -recourse loans but Georgia is a recourse state, does Georgia law supercede the terms in our loan documents. Can the bank come after personal residence or assets in that situation?
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  Roger replied 11 months ago.

Hi - my name is ***** ***** I'll be glad to assist.

Whether your loan is recourse or non-recourse depends on the state law that applies......so you'd need to look at the promissory note and/or the deed of trust to see what the document says about applicable law. If the loan documents say that GA law applies, then there would be recourse to seek a deficiency judgment because GA is a recourse state.

Expert:  Roger replied 11 months ago.

But, if the loan documents says that CA law applies, then you shouldn't have the exposure for a deficiency judgment since CA is a non-recourse state.

Expert:  Roger replied 11 months ago.

My suspicion is that since the property is in GA, that the loan documents will say that GA law applies. But, you'd have to check to make sure.

Related Real Estate Law Questions