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Originally Posted by the
That doesn't make much sense to me.
Home lenders "offer" non-recourse home loans because they have no choice.
Most states have anti-deficiency (i.e., non-recourse) statutes which govern loans secured by real property located within their state. Those statues make the loans non-recourse, as a matter of law.
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Non-recourse doesn't exist here in BC. I can't imagine lending under those circumstances. I suspect that non-recourse applies only to purchases and not refi's. Anti-deficiency statutes really only exacerbate security issues and are another nail in the coffin of responsibility as it relates to borrowers. The credit crunch I see here in Canada is direct result of lending practices like these. For reasons like these, I don't lend in the US.