Nonrecourse Debt

Nonrecourse Debt is a kind of loan that can be secured by equity, which is usually property. If the borrower defaults, issuer can catch the collateral, but cannot search out the borrower for almost any further compensation, even though the collateral won’t cover the full value from the defaulted amount. This is one instance in which the borrower don’t even have personal liability for the loan. Here also focus on  nonrecourse consumer legal funding and tax consequences of disposition of property encumbered by nonrecourse debt.