Regarding Foreclosure

[Sam Spade]

Opebo - You're essentially correct.

If the loan is non-recourse, the lender can't go after your other assets (or garnish your income).  If the loan is recourse, the lender can go after all that stuff (they have to file a judgment first, but yes).

In some states, home mortgages are required to be non-recourse, as memory serves me.  I have no clue about where you are.

As to Snowguy's point, I used to know the answer to that question.  I need to go reexamine the Code, but it sounds plausible.

[Sam Spade]

My memory is getting bad.  Anyways, Snowguy is right.  Go examine the Crane doctrine.

[Sam Spade]

They do that to when they repo your car. They sell it for whatever they can get and then go after you for the rest.

Those type of loans are almost always recourse loans.  Read the fine print.  It's always there.

[Sam Spade]

Can't the bank get a deficency judgment for the difference of the amount owed and the amount received for the property sold at auction?

I'll make sure, but I'm almost certain that's only with recourse loans.