With most standard home loans, the lender can hold the borrower personally liable in the event of a default. Such loans are commonly referred to as:

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Recourse loans allow the lender to pursue the borrower's personal assets in the event of a default. This means that the lender can seek repayment from the borrower even if the value of the property is not enough to cover the outstanding loan balance. Nonrecourse loans, on the other hand, limit the lender's ability to seek repayment to the value of the collateral (i.e. the property itself), and are typically only available for certain types of loans such as commercial real estate loans. Therefore, A) recourse loans is the best choice for this question.

With Most Standard Home Loans, the Lender Can Hold the Borrower