hard · National Real Estate Exam
A seller has a 'non-recourse' loan. If a buyer assumes this loan, what is the impact on the lender's ability to seek a deficiency judgment?
- The seller becomes liable for a deficiency, but only if the buyer is insolvent.
- The buyer becomes personally liable even if the original loan was non-recourse.
- The lender can convert the loan to a recourse loan upon the buyer's assumption.
- The lender cannot seek a deficiency against either the buyer or the seller.
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