Non-recourse loan is a loan that limits the lender’s remedies to foreclosure of the mortgage and acquisition of the collateral or property in the event of financial default by the borrower, even if property value is less than the loan amount. Barring any breaches of so-called “bad-boy carve-outs” (fraud, waste, gross negligence, misappropriation of funds, or non-approved conveyance or encumbrance), the borrower will not have personal liability for the loan.