Nonrecourse liabilities are debts for which the borrower is not personally liable, meaning that the lender cannot pursue the borrower's personal assets if the borrower defaults on the loan. Qualified nonrecourse financing, on the other hand, is a specific type of nonrecourse financing that meets certain IRS requirements. To qualify, the financing must be secured by real property used in a trade or business, and the borrower's recourse for the debt is limited to the real property. The difference lies in the IRS recognition of these types of liabilities for tax purposes.