Loans, Debt & Credit - View Single Post - How do I know if it's a recouse loan or not?

spj3210 · 12-20-2008, 09:17 AM

OK, thanks, I think I understand. So my second loan becomes recourse in nature after the first loan forecloses, b/c it is no longer a secured loan? The fact that it was used as purchase money is irrelevant at that point then.

I think in the thread that is titled something like "Recourse or not?" you said that recourse or not only has to do with anti-deficiency judgment laws. So it's like one in the same then. Michigan doesn't have those protections so in Michigan there's really no such thing as recourse or non-recourse loans. Do I have this right?

THANKS!

This is all so confusing and I'm just trying to figure out how anyone with a job and an 80/20 loan would ever be able to afford/justify walking away from a Michigan home since their wages would still be garnished to pay for that other loan.

12-20-2008, 09:17 AM	#9 (permalink)
spj3210 Senior Member Join Date: Dec 2008 Posts: 73 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: How do I know if it's a recouse loan or not? OK, thanks, I think I understand. So my second loan becomes recourse in nature after the first loan forecloses, b/c it is no longer a secured loan? The fact that it was used as purchase money is irrelevant at that point then. I think in the thread that is titled something like "Recourse or not?" you said that recourse or not only has to do with anti-deficiency judgment laws. So it's like one in the same then. Michigan doesn't have those protections so in Michigan there's really no such thing as recourse or non-recourse loans. Do I have this right? THANKS! This is all so confusing and I'm just trying to figure out how anyone with a job and an 80/20 loan would ever be able to afford/justify walking away from a Michigan home since their wages would still be garnished to pay for that other loan.