Non-Recourse Mortgage
Updated: 29 February 2024
What Does Non-Recourse Mortgage Mean?
A non-recourse mortgage is a loan secured by pledging collateral, typically a piece of real estate the borrower is not responsible for.
Insuranceopedia Explains Non-Recourse Mortgage
If a borrower defaults on their non-recourse mortgage, the lender is entitled to seize the collateral and sell it. If this does not allow them to recover the entire amount, however, the lender cannot pursue the borrower for the remaining funds.
Non-recourse mortgages typically limited to loan-to-value ratios of 50 or 60 percent. This ensures that the property put up to secure the loan provides sufficient collateral.
Related Definitions
Related Terms
Related Articles
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree