Fixed Income Q67

67Charles Dent obtains a non-recourse loan for $200,000. A year later the principal on the loan is $180,000 and Charles defaults on the loan. The lender forecloses and sells the house for $150,000. What amount is the lender entitled to claim from Charles?

Option : A
Explanation : In a non-recourse loan, the lender can only look to the underlying property to recover the outstanding mortgage balance and has no further claim against the borrower.

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