Probably an autocorrect glitch. What he meant to say is no-recourse state.

In some US states, when a mortgage defaults the borrower is personally responsible for the full repayment of the loan. That is, the asset is first sold and if that fails to cover all expenses, the borrower must fork over the difference.

In no-recourse states, the asset turned over to the lender and even if it fails to cover the debt, the borrower gets to walk away.

Non-recourse debt is debt for which you can't pursue the debtor beyond any collateral they originally put up as part of the deal.

http://www.investopedia.com/terms/n/nonrecoursedebt.asp

In California all mortgages are non-recourse debt.

I think he means "no recourse state."

http://www.nolo.com/legal-encyclopedia/whats-the-difference-...

Typo! I meant non-recourse.