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It's not forgiven, even in a non-recourse mortgage. So it can still e.g. hurt your credit score. They just legally can't pursue you for it. With a recourse m
by dmoy 2y ago
It's not forgiven, even in a non-recourse mortgage. So it can still e.g. hurt your credit score. They just legally can't pursue you for it.
With a recourse mortgage, they can go through normal debt channels (including wage garnishment, etc).
- throwaway2037 2y ago"[R]ecourse mortgage": It would be better to say "recourse loan". Mortgages are specific to properties. Loans are generic for anything. In my personal experience, non-recourse loans are basically payday loans with horribly high rates. You would never do it, if given the choice. I guess that 100% of home mortgages (in highly developed countries) are recourse by legal requirements.
- dmoy 2y ago> I guess that 100% of home mortgages (in highly developed countries) are recourse by legal requirements. Not necessarily so in the US. In several states (including the biggest ones like CA and TX), non-recourse mortgages are the default. In other states, sometimes non-recourse mortgages exist too. E.g. right now I'm sitting on a 2.5% fixed 30 year non-recourse mortgage.
- deleted 2y ago[deleted]