Finance
An Indiana lender's recourse loan means that if the borrower defaults:
AThe lender can only take the property
BThe lender can pursue the borrower personally for any deficiency after selling the collateral property✓ Correct
CThe borrower can give back the property and owe nothing more
DThe lender must absorb all losses
Explanation
A recourse loan allows the lender to pursue the borrower personally for any remaining debt (deficiency) after foreclosure and sale of the collateral. A non-recourse loan limits the lender's remedy to the collateral only.
People Also Study
Related Indiana Questions
- In Indiana, a deficiency judgment after a foreclosure sale can be pursued against the borrower for:Finance
- A deed in lieu of foreclosure allows a borrower in default to:Escrow & Title
- A buyer defaults on an Indiana purchase contract and the seller elects to retain the earnest money as liquidated damages. This means:Contracts
- Indiana follows which mortgage theory when a borrower defaults?Finance
- After a judicial foreclosure sale in Indiana, the former homeowner may have a right to:Finance
- A deficiency judgment in an Indiana foreclosure occurs when:Finance
- An Indiana purchase contract subject to the sale of the buyer's existing home includes a kick-out clause. This means:Contracts
- An Indiana seller who defaults on a purchase contract by refusing to close allows the buyer to seek:Contracts
Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Math Concepts
Study This Topic
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →