If I default on a non-recourse RV loan, can that creditor come after my house?
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If I default on a non-recourse RV loan, can that creditor come after my house?
We owe approximately $170,000 for an RV loan. We might be able to get $70,000. The papers and the bank say it is a non-recourse loan. Can they come after my house? We are so upside down on the loan it is crazy. I called and they don’t want to re-negotiate or help in any way.
Asked on September 7, 2010 under Bankruptcy Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
"Non-recourse" means that where an obligation (in this case your RV loan) is entered into, that the boroower is not personally liable l(beyond the specific collateral pledged; in your case the RV) to the lender for any default or loss. This means that no other of your assets are at risk, regardless of how much the RV is now worth. You were luckt to get a nonrecours loan; they are no easy to get and for this very reason.
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