William Marolf obtains a 5 million eur mortgage loan from Bank nederlandse. a year later the principal on the loan is 4 million eur and Marolf defaults on the loan. Bank Nederlandse forecloses, sells the property for 2.5 million eur, and is entitled to collect The 1.5 million eur shortfall from Marolf. Marolf most likely had a:

Question

Quizplus · Accepted Answer

If Marolf had a recourse loan, he would be personally liable for the shortfall after the foreclosure sale. With a non-recourse loan, the lender can only collect from the sale of the property and cannot pursue the borrower personally for any shortfall. A bullet loan is a loan where the entire principal is due at maturity, and is not relevant to the question asked.

William Marolf Obtains a 5 Million Eur Mortgage Loan from Bank