Finance
In New Mexico, a 'non-recourse loan' means that if the borrower defaults:
AThe lender can pursue the borrower's personal assets
BThe lender's only remedy is foreclosure on the property — the lender cannot pursue the borrower personally for any deficiency✓ Correct
CThe government guarantees the loan
DNo foreclosure is permitted
Explanation
A non-recourse loan limits the lender's remedy to foreclosing on the collateral (the property). The lender cannot pursue the borrower personally for any deficiency balance after foreclosure. Many commercial real estate loans are non-recourse.
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