Finance
What is 'recourse vs. non-recourse' in Oregon mortgage lending?
ARecourse loans are government-backed; non-recourse loans are conventional
BWith a recourse loan, the lender may pursue the borrower personally for any deficiency after foreclosure; with non-recourse, the lender's recovery is limited to the property✓ Correct
CRecourse refers to the borrower's right to sue the lender
DNon-recourse mortgages are not available in Oregon
Explanation
In a recourse loan, if the property sells for less than the debt in foreclosure, the lender can pursue the borrower personally for the deficiency balance. In a non-recourse loan, the lender's only remedy is the property itself. Oregon's deed of trust non-judicial foreclosure can limit or eliminate deficiency claims in certain circumstances under the anti-deficiency statutes.
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