Dry Mortgage

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January 1, 1 6 min read Definitions

Dry Mortgage Nonrecourse Mortgage Real Estate Financing Borrower Liability Mortgage Collateral Real Estate Loans Lending Collateral Recovery

A Dry Mortgage, also known as a Nonrecourse Mortgage, is a type of financing where the borrower is not personally liable beyond the collateral securing the loan. In these agreements, the lender can seize the property used as collateral to satisfy the loan, but cannot pursue the borrower for any remaining balance if the collateral does not cover the full liability.