Legal Question in Real Estate Law in Florida

Non Recourse Loan, Recourse State Florida

I have a Purchase Money Loan (Both the First & Second are stamped Non Recourse)

which is being Forclosed upon in the State of Florida, which I understand to be a Recourse State. Since the loans are Non Recourse am I protected against them comming after my assests for any deficiency, even though the state of Florida is a Recourse State?


Asked on 3/29/08, 5:38 pm

2 Answers from Attorneys
Mitchell Roth MW Roth, Professional Law Corporation

Re: Non Recourse Loan, Recourse State Florida

Yes.

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Answered on 3/29/08, 5:56 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Non Recourse Loan, Recourse State Florida

Obviously it would be better to have a response from a Florida lawyer than a couple of California guys; the laws of the two states differ greatly in this area. I too however would say the answer is yes, with a couple of further observations:

(1( Just because a state permits recourse loans doesn't mean it forbids non-recourse loans! In general, parties to loan transactions are allowed to agree on whatever terms thay are able to negotiate. It's a freedom-to-contract principle.

(2) However, just because a document is stamped "Non-Recourse" doesn't necessarily make it such. A stamp on a document may be part of its terms, or it may be leagally meaningless. To be sure the loan is truly non-recourse, I would suggest reading the entire document pretty carefully.

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Answered on 3/29/08, 9:22 pm


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