Non-Recourse and Recourse States List
Below is a list of non-recourse and recourse states.
(Recourse basically means that the lender can come after you (has recourse against you) if your house sold at auction or through a short sale for less than the amount owed the lender. If you borrowed $350,000 to buy your home and it sold at auction for $200,000 there is a deficiency of $150,000. That lender can have recourse against you for that amount depending on your state.
In many states, non-purchase money second mortgages (such as HELOCS) are recourse loans. So, the loan you took out to purchase your house could be non-recourse, but that equity line of credit you used to buy a boat won't be.
Remember that you may be liable for taxes on the deficiency regardless of whether the loan is recourse or non-recourse. Each state has its own variation on the application of its recourse and deficiency statutes. You need to look to yourstate's statutes and speak to a local attorney for an interpretation.)
Non-Recourse States
- Alaska (AK)
- Arizona (AZ)
- California (CA)
- Connecticut (CT)
- Idaho (ID)
- Minnesota (MN)
- North Carolina (NC)
- North Dakota (ND)
- Oregon (OR)
- Texas (TX)
- Utah (UT)
- Washington State (WA)
Recourse States
- Alabama (AL)
- Arkansas (AR)
- Colorado (CO)
- Delaware (DE)
- District of Columbia (DC)
- Florida (FL)
- Georgia (GA)
- Hawaii (HI)
- Illinois (IL)
- Iowa (IA)
- Indiana (IN)
- Kansas (KS)
- Kentucky (KY)
- Louisiana (LA)
- Maine (ME)
- Maryland (MD)
- Massachusetts (MA)
- Michigan (MI)
- Montana (MT)
- Mississippi (MS)
- Missouri (MO)
- Ohio(OH)
- Nebraska (NE)
- Nevada (NV)
- New Hampshire (NH)
- New Jersey (NJ)
- New Mexico (NM)
- New York (NY)
- Oklahoma (OK)
- Pennsylvania (PA)
- Puerto Rico (PR)
- Rhode Island (RI)
- South Carolina (SC)
- Tennessee (TN)
- Vermont (VT)
- Virginia (VA)
- West Virginia (WV)
- Wisconsin (WI)
- Wyoming (WY)
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