If there is a default on a commercial mortgage loan, the lender looks to the proceeds from the ________ for repayment and has ________ to the borrower for any unpaid balance.

Question

Quizplus · Accepted Answer

In a non-recourse loan, which is common in commercial mortgage lending, the lender's only option for repayment in the event of default is to seize and sell the property securing the loan. The lender has no recourse to pursue the borrower's other assets for any remaining unpaid balance.

If There Is a Default on a Commercial Mortgage Loan