Finance
In Louisiana, a 'recourse loan' means that if the borrower defaults and the foreclosure sale proceeds don't cover the debt:
AThe borrower has no further liability
BThe lender may seek a deficiency judgment against the borrower personally for the remaining balance✓ Correct
CThe government covers the deficiency
DThe mortgage insurance covers any deficiency
Explanation
In a recourse loan, the lender can pursue a deficiency judgment against the borrower personally if the foreclosure sale proceeds are insufficient to satisfy the debt. A non-recourse loan limits the lender's recovery to the property only.
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