Non-Recourse Loans and the HUD 223(f) Loan Program
Non-recourse loans are typically loans secured by collateral (often real estate). However, if a borrower defaults, they cannot be held personally liable and lenders may not seize their personal property or garnish wages. Instead, the lender must accept a certain amount of loss. HUD multifamily loans, including HUD 223(f), HUD 221(d)(4), and HUD 232 loans are all non-recourse loans.