Finance
In South Carolina, a 'recourse loan' means that after foreclosure, the lender:
ACannot collect any more money from the borrower
BCan pursue the borrower personally for any deficiency after the sale✓ Correct
CMust return to the foreclosure sale if prices rise
DHas no right to the property after foreclosure
Explanation
With a recourse loan, if the foreclosure sale proceeds don't cover the full loan balance, the lender can seek a 'deficiency judgment' against the borrower personally for the remaining amount.
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Key Terms to Know
Pre-Approval
A lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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