How can I tell if I have recourse or non-recourse loans? 6 Answers as of February 27, 2011

How can I tell if the 1st and 2nd Deeds of Trust on my home are recourse or non-recourse notes? I've read the documents. I know they have the power of sale, but it's not clear if they can go after my other assets.

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William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
A judgment lien creditor can go after your assets in the event of a foreclosure.
Answer Applies to: Tennessee
Replied: 2/27/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
It depends on what state you are in. In California the first is non-recourse and the second is, assuming we are talking about you home loan.
Answer Applies to: California
Replied: 2/27/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
A non-recourse note is only a note that was executed at the original purchase of the property. Both the 1st and 2nd could be, if that's when they were executed. If the 1st or 2nd or both have been refinanced since the property was purchased, they are now recourse notes. Also, if the 2nd was executed after the purchase, it is a recourse note.
Answer Applies to: California
Replied: 2/27/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
Need to ask real estate attorney who closed loans.
Answer Applies to: Alabama
Replied: 2/27/2011
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
Generally, loans you took out when you first bought the home are non-recourse loans. So, if you took out first and second when you bought the home you should be fine. However, if after purchase you took out a second, then that loan should be a recourse loan and would be able to sue you personally if you foreclose on the home. General rule is that first deeds are non-recourse loans. These are general rules, however.
Answer Applies to: California
Replied: 2/27/2011
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