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What happens if the total dues payable to the lender (i.e. principal + accumulated interest) exceed the value of the property at the time of final settlement?

April 26, 2017accumulated dues exceed happens Lender Payable Principal total

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What happens if the total dues payable to the lender (i.e. principal + accumulated interest) exceed the value of the property at the time of final settlement?

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All RML(s) will carry a ‘no negative equity’ or ‘non-recourse’ guarantee. In other words, the borrower will never owe more than the net realizable value of the property, provided the terms and conditions of the loan have been met.