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Abstract: 

Among the many casualties of the ongoing recession are failed real estate deals, many that were financed with loans for which the investors signed personal guarantees. This article explores the circumstances that lead to an investor/guarantor becoming liable on a personal guaranty, the issues the guarantor will need to have addressed when discussing restructuring and loan modification options with the lender, the various legal and tax considerations that come into play for all parties, and the strategies the guarantor is likely to consider—and that the lender should be prepared to deal with.

Keywords: guaranties; guaranty of payment and performance;

Affiliations:  1: Horwood Marcus & Berk Chartered; 2: Horwood Marcus & Berk Chartered; 3: Horwood Marcus & Berk Chartered.