Non-recourse loans only apply to the person’s primary residence, and only applies to acquisition debt (i.e. the loan used to initially purchase the property). The lender can go after the borrowers other assets to cover the debt if the property is investment property or if the borrower refinanced (no longer the acqusition loan. If the borrower takes a cahs-out re-fi, they put their other assets at risk. The law intends to protect those who have purchased to put a roof over their head. IMO, a majority of the speculators, flippers, and gamblers likely are not sitting on their original loans on their personal residence.
