In general, an exculpatory clause is a clause that eliminates a partys liability for damages caused by a breach of contract. A common type of exculpatory clause involves limiting liability on a loan to the collateral. In other words, if there is a default, the contract says that the damages will be limited to execution on the collateral (i.e., foreclosure on the property covered by the mortgage or deed of trust).
The New Hampshire Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgments is a legal provision that protects borrowers in the state from being held personally liable for any deficiency judgment following foreclosure on their property. This clause ensures that if the foreclosure sale does not cover the remaining mortgage balance, the lender cannot pursue the borrower's personal assets to recover the difference. Under the Exculpatory Clause, the borrower is essentially relieved of any further financial obligation beyond the surrendered property. This clause particularly benefits borrowers facing foreclosure, as they are spared from potential financial ruin and can focus on rebuilding their lives. There are different types of Exculpatory Clauses or Nonrecourse Provisions applicable in New Hampshire, including: 1. Full Nonrecourse Provision: This provision completely bars the lender from seeking any further recourse or deficiency judgment against the borrower after the foreclosure sale. The borrower is fully protected, and the lender must accept the value of the sold property as payment in full, regardless of any remaining mortgage balance. 2. Limited Recourse Provision: In this provision, while the borrower is generally protected from personal liability, there may be specific circumstances outlined in the mortgage contract where the lender can pursue deficiency judgment. For example, if the borrower has committed fraud or intentionally damaged the property, the lender may still have the right to seek further recourse. 3. Exculpatory Clause with Cash-Out Limitation: This provision protects borrowers from deficiency judgments up to a certain limit. If the deficiency following the foreclosure sale falls within this limit, the lender cannot pursue the borrower for the difference. However, if the deficiency exceeds the specified limit, the lender may be able to seek further recourse. It is crucial for borrowers in New Hampshire to carefully review their mortgage agreements to understand the specific type of Exculpatory Clause or Nonrecourse Provision included. Seek the advice of legal experts to ensure full comprehension and protection within the confines of the law. With the New Hampshire Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgment, borrowers can find relief and security amid foreclosure proceedings, allowing them to move forward with their lives without the fear of enduring further financial burdens.
The New Hampshire Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgments is a legal provision that protects borrowers in the state from being held personally liable for any deficiency judgment following foreclosure on their property. This clause ensures that if the foreclosure sale does not cover the remaining mortgage balance, the lender cannot pursue the borrower's personal assets to recover the difference. Under the Exculpatory Clause, the borrower is essentially relieved of any further financial obligation beyond the surrendered property. This clause particularly benefits borrowers facing foreclosure, as they are spared from potential financial ruin and can focus on rebuilding their lives. There are different types of Exculpatory Clauses or Nonrecourse Provisions applicable in New Hampshire, including: 1. Full Nonrecourse Provision: This provision completely bars the lender from seeking any further recourse or deficiency judgment against the borrower after the foreclosure sale. The borrower is fully protected, and the lender must accept the value of the sold property as payment in full, regardless of any remaining mortgage balance. 2. Limited Recourse Provision: In this provision, while the borrower is generally protected from personal liability, there may be specific circumstances outlined in the mortgage contract where the lender can pursue deficiency judgment. For example, if the borrower has committed fraud or intentionally damaged the property, the lender may still have the right to seek further recourse. 3. Exculpatory Clause with Cash-Out Limitation: This provision protects borrowers from deficiency judgments up to a certain limit. If the deficiency following the foreclosure sale falls within this limit, the lender cannot pursue the borrower for the difference. However, if the deficiency exceeds the specified limit, the lender may be able to seek further recourse. It is crucial for borrowers in New Hampshire to carefully review their mortgage agreements to understand the specific type of Exculpatory Clause or Nonrecourse Provision included. Seek the advice of legal experts to ensure full comprehension and protection within the confines of the law. With the New Hampshire Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgment, borrowers can find relief and security amid foreclosure proceedings, allowing them to move forward with their lives without the fear of enduring further financial burdens.
