Definition: Options that determine the type of mortgage loan in which the lenders remedies in the event of borrower default are either limited or unlimited, and may extend beyond the property to the borrowers personal assets. Typical options include Recourse, Non- Recourse, or Partial Recourse. Recourse - A type of mortgage loan in which the lenders remedies in the event of borrower default are unlimited, extending beyond the property to the borrowers personal assets. Non-Recourse - A mortgage in which the lender will not pursue personal liability against the borrower. The lenders security is the real estate being financed. Usually subject to standard carveouts including fraud and misrepresentation. Partial Recourse - a combination of recourse and non-recourse conditions.
