[jorian]

I would think that the answer lies in the mortgage contract. If your friend is the lender/mortgagee he should have a copy which contains terms, conditions and recourse should the loan go into default.

Each jurisdiction has mortgage terms that will be recognized and upheld in court IF the mortgage contract in default does not contravene those terms.

Mortgages are registered in priority - 1st 2nd 3rd etc. What mortgage does your friend hold?

Non-recourse financing is brutal from a mortgagee's standpoint and I can't understand why any lender would offer them. Remember the S&L debacle from the 80's? Many of those loans were non-recourse. If your friend bought an existing mortgage that was non-recourse then he is stuck with those terms. If he originated the loan himself he only has himself to blame.