Under Texas law, a reverse mortgage borrower is protected by which of the following non-recourse provisions?
Correct Answer
A) The lender can only recover the amount owed from the sale of the property and cannot pursue the borrower's estate for any deficiency
Texas reverse mortgages under Section 50(k) include non-recourse provisions, meaning the lender can only recover the amount owed from the sale of the property. If the home sells for less than the loan balance, the lender absorbs the loss and cannot pursue the borrower or their estate for the deficiency.
Why This Is the Correct Answer
Texas reverse mortgages under Section 50(k) include non-recourse provisions, meaning the lender can only recover the amount owed from the sale of the property. If the home sells for less than the loan balance, the lender absorbs the loss and cannot pursue the borrower or their estate for the deficiency.
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