How can I tell if my loan is recourse or non-recourse?

August 21, 2008

From:  Rene
Date:  Fri, 16 Nov 2007

I read your article on tax consequences of foreclosures and short sales. How do you tell if your loans are recourse or non-recourse? Is it different from state to state?

Answer

Date:  27 Nov 2007

Hello Rene,

The only certain way to find out is to consult with a real estate attorney. The rules do vary from state to state. In California, most mortgages that were originated for the purchase of a principal residence are non-recourse.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.



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