The Note Is the Document Used to Create a Legal

Multiple Choice

The note is the document used to create a legal debt. In most states, the note creates personal liability for residential borrowers. When mortgage lenders have access to other borrower assets in situations where the foreclosure sale price is less than the total amount of the loan outstanding, we commonly refer to this type of loan as a:

A) nonrecourse loan
B) mini-perm loan
C) partially amortizing loan
D) recourse loan