Non-Recourse and Recourse States List

Below you'll find a list of Non-recourse and Recourse states

Non-Recourse States

  • Alaska
  • Arizona
  • California
  • Connecticut
  • Idaho
  • Minnesota
  • North Carolina
  • North Dakota
  • Oregon
  • Texas
  • Utah
  • Washington

Recourse States

  • Alabama
  • Arkansas
  • Colorado
  • Delaware
  • District of Columbia
  • Florida
  • Georgia
  • Hawaii
  • Illinois
  • Iowa
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Montana
  • Mississippi
  • Missouri
  • Ohio
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • Oklahoma
  • Pennsylvania
  • Puerto Rico
  • Rhode Island
  • South Carolina
  • Tennessee
  • Vermont
  • Virginia
  • West Virginia
  • Wisconsin
  • Wyoming

What it means if Your Lender has Recourse.

Recourse basically means that the lender can come after you (has recourse against you) if your house sold at auction or through a short sale for less than the amount owed the lender. If you borrowed $350,000 to buy your home and it sold at auction for $200,000 there is a deficiency of $150,000. That lender can have recourse against you for that amount depending on your state.

HELOCS are not always Recourse

In many states, non-purchase money second mortgages (such as HELOCS) are recourse loans. So, the loan you took out to purchase your house could be non-recourse, but that equity line of credit you used to buy a boat won't be.

Remember that you may be liable for taxes on the deficiency regardless of whether the loan is recourse or non-recourse. Each state has its own variation on the application of its recourse and deficiency statutes. You need to look to your state's statutes and speak to a local attorney for an interpretation.(You can present your case, for free, by contacting LegalMatch.)