Does Hawaii Provide A Non Recourse Loan?
The two basic types of home loans are the recourse loan and the non recourse loan. Both provide their own advantages and challenges to their creditor and debtor. In the recourse loan the creditor is allowed to come to the debtor in the event of default. Suppose the bank is your creditor, they can take action to make you pay the amount. They can even go to court against you and maybe even seize your property. The advantage that a recourse loan has over a non-recourse loan is that in the recourse loan, the monthly payment is much less. Even though it is possible to get an unsecured loan, you will have to convince the bankers of a good credit score and proof that you will indeed pay back the loan. In Hawaii you get only non-recourse loans. With non-recourse loans, it’s an entirely different story. With this type of loan, you can default on the loan without running, scared that your creditors will come after you. The creditors usually have some collateral to support them when the loan goes
