A loan that allows the lender to seize the collateral property as well as pursue other assets of the borrower if the sale does not cover the owed amount is known as what?

A loan that allows the lender to seize the collateral property as well as pursue other assets of the borrower if the sale of the collateral does not cover the owed amount is known as a recourse loan.

In the context of borrowing, recourse loans provide lenders with legal avenues to recover the outstanding debt beyond just the collateral that secures the loan. This means that if a borrower defaults and the collateral does not fully cover the debt, the lender can legally seek repayment from the borrower's other assets, such as bank accounts or other properties. This type of loan provides more security to lenders compared to non-recourse loans, where the borrower is only responsible for the collateral and not their other assets.

This distinction is crucial in understanding the implications of a loan for both the lender and the borrower, as it affects the risk and potential consequences of defaulting on the loan.