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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 31768
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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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: 1 year ago.
Category: Real Estate Law
Expert:  Roger replied 1 year 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 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 1 year 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 1 year 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.