A non-recourse loan is a secured loan that limits the creditor, in the event of the debtor`s default, to address only the collateral that insures the loan to satisfy the debt and not the other assets of the debtor that are not expressly guaranteed as collateral, except in certain limited and negotiated circumstances called carve-out. Non-regressions generally include an act or omission of the debtor that is an essential obligation, such as non-insurance. B or certain acts of poor quality (often called “bad boy”), such as misappropriation or misuse of funds from property income and violation of a clause prohibiting sale. Depending on the debtor`s assets and whether the debtor is an EPS that is not an asset other than the debt and if there is a guarantor, non-recourse may be of low value. A mortgage is a document that incriminates real estate as collateral for the payment of a debt or other obligation. The term “mortgage” refers to the document that creates the right to pledge to real estate and is registered by the local document authority to give notification of the right of bet guaranteed by the creditor. The creditor or lender, also known as a mortgage (in a mortgage) or beneficiary (in a trust company), is the owner of the debt or other obligation guaranteed by the mortgage. The debtor or borrower, also called Mortgagor (in a mortgage) or debtor (in a fiduciary company), is the person or entity that is liable for the debt or any other obligation guaranteed by the mortgage and who owns the property that is the subject of the loan. In almost all cases, it is the law of the state in which the property is located that determines whether a mortgage or an act of trust can be used. Although a requirement of trust that insures real estate in the context of a debt serves the same purpose and fulfills the same function as a mortgage, there are technical and content differences between the two. A deed of trust is executed by the debtor and the owner to a disinterested third party, identified as an agent, who owns the fiduciary property for the creditor; Considering that, when a mortgage is used, the ownership of the security remains in the hands of the debtor and the mortgage creates a right of bet on the property for the benefit of the creditor. In some jurisdictions, the trust deed allows the agent to obtain the property without foreclosure and sale, while others treat a deed of trust as a mortgage.
In the latter jurisdictions, the act of trust is governed by the law applicable to mortgages. The trust deed requires the agent to transfer the property to the debtor if the debt has been fully purchased. The transfer of the creditors` interests does not result in a change of agent; Instead, only the debt note or other supporting documents is transferred and the new owner of the loan acquires the economic shares of the former lender in the trust.