Recourse Loan

A recourse loan allows the lender to pursue the borrower personally if the collateral doesn't cover the debt at default. The lender can sue for a deficiency judgment, garnish wages, levy bank accounts, and seek payment from other borrower assets.

Most U.S. mortgages are technically recourse, though state laws vary: about a dozen states are "non-recourse" states for purchase-money first mortgages, where lenders' recovery is limited to the property even on residential loans.

Why it matters for Milo customers

Milo's mortgage products follow state recourse rules — same as any conventional lender. Milo's crypto-backed loans (not mortgages), however, are explicitly non-recourse to the borrower's other assets: the pledged crypto is the only collateral on the line.

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