Does the non-recourselaw apply to land only mortgages?
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Does the non-recourselaw apply to land only mortgages?
I have 6.5 acres in AZ and I walked away from it after paying on it for the past 5 years. I am now in the arrears by 2 months.
Asked on July 18, 2011 under Real Estate Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Under the laws of most States in this country a "non-recourse loan" only applies to a residence bought by a property owner to live in for herself or himself and is obtained solely in the purchase of the property. Refinances of loans are not purchase money (non-recourse) loans typically.
However, in some States if the mortgage holder goes through a non-judicial as opposed to a judicial foreclosure (lawsuit filed in a court house) and there is a non-judicial foreclosure of the property, the non-judicial foreclosure most often is non-recourse even if the loan was a refinace or not purchase money.
Meaning, one might not owe any money on the loan that was foreclosed upon by way of a non-judicial foreclosure.
The above answer hopefully points you in the right direction.
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