Recourse Loan

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Dictionary Says

Definition of 'Recourse Loan'

A type of loan that allows a lender to seek financial damages if the borrower fails to pay the liability, and if the value of the underlying asset is not enough to cover it. A recourse loan  allows the lender to go after the debtor's assets that were not used as loan collateral in case of default.
Investopedia Says

Investopedia explains 'Recourse Loan'

Recourse loans give lenders a higher degree of power because they have fewer limits on what assets lenders can go after for loan repayment. For example, suppose that a homeowner takes out a recourse loan for $500,000 to purchase a home and then goes into foreclosure when the local housing market declines. If the value of the home is now only $400,000 and it was purchased with a recourse loan, the lending institution can target the borrower's other assets in order to make up for the outstanding $100,000.
Search results for

'Recourse Loan'

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    http://www.investopedia.com/ask/answers/08/nonrecourse-loan-vs-recourse-loan.asp
    The essential difference between a recourse and non-recourse loan has to do with
    which assets a lender can go after if a borrower fails to repay a. ...

  • The Dangers Of Stranger-Owned Life Insurance

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    ... Investors will pool money to give someone in poor health upfront cash and a deferred,
    non-recourse loan that can be settled simply by surrendering the life ...

  • When The Federal Reserve Intervenes (And Why)

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    ... As part of the deal, the Federal Reserve took the extraordinary step of issuing
    JPMorgan Chase a $29 billion non-recourse loan for the purchase of Bear Stearns ...

  • Small Business: Speed Up Receivables To Avoid A Cash Crunch

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    ... Of course, even with a non-recourse factor, there is shared risk because the business
    will not receive the second installment ... $30K Home Equity Loan, 5.74%, 5.77% ...

  • What is political risk and what can a multinational company do to ...

    http://www.investopedia.com/ask/answers/06/politicalrisk.asp
    ... Certain conditions, such as trying other channels for recourse and the degree to
    which the business was affected, must be met. ... $30K Home Equity Loan, 5.74%, 5.77 ...

  • 8 Ways To Help Family Members In Financial Trouble

    http://www.investopedia.com/articles/pf/09/help-family-members-trouble.asp
    ... a recourse if he or she doesn't make loan payments on time or in full (ie increasing
    interest charges, ceasing any further loan payments, taking legal action ...

  • 4 Common Credit Card Misconceptions - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0212/4-Common-Credit-Card-Misconceptions.aspx
    ... When faced with these surcharges, your only recourse is to notify the credit card
    networks that one of their merchants is violating its agreement with them. ...

  • Equity Stripping Leaves Creditors Empty-Handed

    http://www.investopedia.com/articles/mortgages-real-estate/09/equity-stripping-assets.asp
    ... Eventually, when it is sold, the proceeds are used to pay off the existing mortgage
    loan, leaving the creditor with no recourse against the property. ...

  • Sugar: A Sweet Deal For Investors

    http://www.investopedia.com/articles/optioninvestor/investing-in-sugar.asp
    ... of sugar is supported by the USDA's Commodity Credit Corporation, which hands out
    non-recourse loans to sugar producers. Think of the loan program as a floor ...

  • 5 Keys To Unlocking A Better Credit Score

    http://www.investopedia.com/articles/pf/07/credit-rebuilding.asp
    ... Perhaps you've paid off a particular loan that isn't reflected on the report ... In these
    instances your first recourse should be to contact the credit agency and ...

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