The difference between a recourse and non-recourse mortgage is: in a recourse loan, the lender can seize all the borrower's asset except the property the mortgage financed in a non-recourse loan, the borrower can default without financial loss in a recourse loan, the lender can seize only those assets of the borrower that the borrower has pledged as collateral for the mortgage in a non-recourse loan, neither the borrower nor the lender need to sign the mortgage document a in a non-recourse loan, a foredosure eliminates all borrower liens on the property but not the legal debt owed by the borrower