Non-recourse loan question

[Kest Cousins]

My question is if you are trying to assume a non-recourse loan would you need a sponsor for the net worth or is that up to the bank?
From my understanding a non-recourse loan they (the bank) cannot come back to you personally, so what would the sponsor do?

[Paul B.]

I think the term you might be looking for is "guarantor."

A non-recourse loan means exactly that: no personal recourse to the borrower; the lender can only foreclose on the collateral in case of default.

However, that doesn't mean the lender doesn't care about the borrower, especially if you're talking about a real estate loan. Perhaps the borrower is an exceptionally gifted real estate entrepreneur with a knack for getting things right.

It sounds like you're trying to assume a non-recourse loan, and with that, I wish you much luck.