Finance
What is 'recourse' versus 'non-recourse' in Rhode Island mortgage lending?
ARecourse means the lender can pursue the borrower personally after foreclosure; non-recourse limits the lender to the collateral only✓ Correct
BNon-recourse means the borrower can refinance at any time
CRecourse means the loan has a prepayment penalty
DThere is no distinction in Rhode Island
Explanation
In a recourse loan, if foreclosure proceeds are insufficient to cover the debt, the lender can pursue the borrower personally for the deficiency. In a non-recourse loan, the lender's remedy is limited to the collateral (the property).
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