What does "recourse" mean in a short sale?
Essentially, it means that the note survives and is not paid in full or otherwise satisfied, and so whatever remedies the bank had previous to this “sale” still exist.

It is very important on short sales to be sure that the seller understands the ramifications of any recourse following the completion of the sale.

Posted By: Brian D. Lytle, Esq. on Friday, October 08, 2010