Recourse Loans

1 Posts
1 Sections
1 Types

January 1, 1 6 min read Definitions

Personal Liability Real Estate Mortgage Loans Recourse Loans Debt Responsibility Deficiency Judgment

Personal liability refers to an individual’s legal responsibility for a debt. In most mortgage loans on real estate, personal liability means that the borrower is accountable not only for the property but also for the repayment of the debt itself. Distinguishing it from nonrecourse loans and enhanced by additional clauses like the exculpatory clause, this concept is critical in financial and real estate transactions.