recourse loan

Definition

A loan where the borrower remains personally liable even after foreclosure if the property sells for less than owed. It's the lender's insurance policy that you can't just walk away.

Example Usage

The commercial recourse loan meant the developer would be personally liable for any deficiency if the project failed.

Origin

Standard lending term distinguishing personal liability from secured-only debt

Fun Fact

Most residential mortgages in the U.S. are non-recourse in practice, but commercial loans almost always have recourse provisions.

Source: Commercial lending and finance terminology

Related Terms

Intermediate

blanket mortgage

A single loan that covers multiple properties, popular with developers and investors who find getting individual mortgages tedious. It's the financial equivalent of buying in bulk, often with a release clause letting you sell properties individually.

🏠 Real Estate

Intermediate

cash-out refinance

When you refinance your mortgage for more than you owe and pocket the difference, essentially using your house as a personal ATM. It's a way to access home equity while simultaneously increasing your debt and monthly payment—what could go wrong?

🏠 Real Estate

Intermediate

wholesaling

A real estate strategy where investors contract a property at below-market price and immediately sell the contract to another buyer for a profit, without ever actually owning the property. It's like being a middleman who gets paid for connecting dots on a map.

🏠 Real Estate

Beginner

fixture

Personal property that has been permanently attached to real estate and legally becomes part of the property. The eternal battleground of what stays and what goes when you sell.

🏠 Real Estate

Beginner

CMA

Comparative Market Analysis—a report comparing similar properties to determine a home's market value. It's like Zillow's estimate, except prepared by an actual human who might know what they're doing.

🏠 Real Estate

Advanced

appurtenant

A fancy legal term for 'stuff that comes with the property,' particularly easements that transfer with the land rather than staying with the owner. It's the real estate equivalent of 'batteries included,' except it's more like 'right-of-way for your neighbor to cross your lawn included.' Lawyers love using this word to make simple concepts sound sufficiently billable.

🏠 Real Estate

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