Loan Glossary

Plain-English definitions for every term you'll encounter in the loan process

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Showing 2 terms in Commercial starting with R
R

Real Estate Owned (REO)

Commercial

Property acquired by a lender through foreclosure after failing to sell at a foreclosure auction. REO properties are sold by the lender's REO department.

Recourse vs Non-Recourse Loan

Commercial

A recourse loan allows the lender to pursue a borrower's personal assets if the collateral is insufficient. A non-recourse loan limits the lender's recovery to the collateral only — personal assets are protected.