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What is the difference between recourse and nonrecourse commercial property loans?

Updated over 11 months ago

A recourse commercial property loan means that the borrower is personally liable for the loan and any default could result in the lender seizing personal assets to pay off the debt.

A non-recourse commercial property loan limits the lender’s ability to seek repayment beyond the collateralized property. In this case, if there is a default on the loan, the lender can only seize and sell the property to recoup their losses.

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