Thursday, September 22, 2011

NON-RECOURSE AND RECOURSE STATES LIST


Non-Recourse and Recourse States List






Below is a list of non-recourse and recourse states.
(Recourse basically means that the lender can come after you (has recourse against you) if your house sold at auction or through a short sale for less than the amount owed the lender. If you borrowed $350,000 to buy your home and it sold at auction for $200,000 there is a deficiency of $150,000. That lender can have recourse against you for that amount depending on your state.
In many states, non-purchase money second mortgages (such as HELOCS) are recourse loans. So, the loan you took out to purchase your house could be non-recourse, but that equity line of credit you used to buy a boat won't be.
Remember that you may be liable for taxes on the deficiency regardless of whether the loan is recourse or non-recourse. Each state has its own variation on the application of its recourse and deficiency statutes. You need to look to yourstate's statutes and speak to a local attorney for an interpretation.)




Non-Recourse States

  • Alaska (AK)
  • Arizona (AZ)
  • California (CA)
  • Connecticut (CT)
  • Idaho (ID)
  • Minnesota (MN)
  • North Carolina (NC)
  • North Dakota (ND)
  • Oregon (OR)
  • Texas (TX)
  • Utah (UT)
  • Washington State (WA)

Recourse States

  • Alabama (AL)
  • Arkansas (AR)
  • Colorado (CO)
  • Delaware (DE)
  • District of Columbia (DC)
  • Florida (FL)
  • Georgia (GA)
  • Hawaii (HI)
  • Illinois (IL)
  • Iowa (IA)
  • Indiana (IN)
  • Kansas (KS)
  • Kentucky (KY)
  • Louisiana (LA)
  • Maine (ME)
  • Maryland (MD)
  • Massachusetts (MA)
  • Michigan (MI)
  • Montana (MT)
  • Mississippi (MS)
  • Missouri (MO)
  • Ohio(OH)
  • Nebraska (NE)
  • Nevada (NV)
  • New Hampshire (NH)
  • New Jersey (NJ)
  • New Mexico (NM)
  • New York (NY)
  • Oklahoma (OK)
  • Pennsylvania (PA)
  • Puerto Rico (PR)
  • Rhode Island (RI)
  • South Carolina (SC)
  • Tennessee (TN)
  • Vermont (VT)
  • Virginia (VA)
  • West Virginia (WV)
  • Wisconsin (WI)
  • Wyoming (WY)
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