Why use Guarantees?
• The value of the foreclosed property may not be sufficient to cover the debt, or…
• Foreclosure is complicated or undesireable due to property problems.
• Individual who guarantees the debt has far more assets than his/her entity.

Loan Guarantees enable us to make loans that couldn’t otherwise be made and help us collect on those loans.

Almost everyone has a guarantee form saved on their desktop, can print it out, and obtain a signature.

What’s wrong with your guarantee? You won’t find out until you make a demand for payment to the guarantor and their attorney sends you a letter…communicating their refusal to pay. Consider:

• Guarantor “Rights” Learn about them now, rather than from the attorney’s letter. For example, “Gradsky” waivers, where certain guarantor rights must be waived to make the guarantee enforceable
• “Sham Guarantees,” where the guarantor “guarantees” their own debt
• “Good Guarantee Gone Bad:”  The Mishandling of even a good guarantee can undo your diligent efforts.
• Secured vs. Unsecured Guarantees, Non-recourse “Carve-out” Guarantees, and “Springing Guarantees”
• California’s anti-deficiency and “one from of action” rules – when do they apply?
• Potential obligations of lender to disclose adverse material facts to guarantor

Making Guarantees Work: You’ll Find out…..
The problems: What can go wrong and the five clever ways guarantors get out of paying on your guaranty.
Solutions: How to structure Guarantees for payment, and seven ways to plug holes in your guarantee “bucket.”

Join us…

Thursday, October 20 at 12:00 noon for a fast-moving, information-packed hour that will help you avoid losses and provide you with ways to improve your “guarantee strategy.”