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    jennsu's Avatar
    jennsu Posts: 1, Reputation: 1
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    #1

    Mar 22, 2010, 05:41 PM
    Recourse loans and short sale
    What happens with a recourse loan in a short sale?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Mar 22, 2010, 06:37 PM

    Same as one that is not. A short sale, the lender agrees to accept the lower amount to settle the debt,

    The recourse loan allows them to come after you after you default for the balance.

    This with a recourse loan, the lender is less likely to accept a short sale if they believe they can latter collect from you, after they foreclose
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