Finance
In Minnesota, which of the following is a 'non-recourse' mortgage?
AA mortgage where the lender can sue the borrower personally if foreclosure proceeds are insufficient
BA mortgage where the lender's only remedy upon default is to foreclose on the property, with no personal liability for the borrower✓ Correct
CA mortgage with no due-on-sale clause
DA mortgage that does not require personal credit qualification
Explanation
A non-recourse loan limits the lender's remedy to foreclosure of the collateral (the property). If the property's sale proceeds are less than the loan balance, the lender cannot pursue the borrower personally for the 'deficiency.' Many commercial real estate loans in Minnesota are structured as non-recourse to attract investment.
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