It is typical today that a borrower may need a guarantor in order to get approved for a real estate loan or purchase. The role of the guarantor is to ensure the borrower will be able to pay for the real estate by putting their own credit on the line. If a borrower’s income or credit score is too low to be approved for a real estate loan, they can try to secure a guarantor with stronger credit than them. This applies whether the borrower is starting a commercial business property or simply renting an apartment.
From the perspective of an Asset Manager or Loan Portfolio Manager, the guarantor is not simply putting their reputation on the line. They are holding themselves equally liable for the repayment of the loan. That is what makes the role of the guarantor mutually beneficial: if the borrower ends up unable to repay the loan, the guarantor can be held responsible for paying it for them. If both of them are unwilling to make payments, they both can be taken to court.
If you are an Asset Manager or Loan Portfolio Manager grappling with Florida commercial real estate that is not performing, you need a team with experience to navigate this minefield. A recent case reminded us here at The Reyes Law Group that a guarantor is only as good as the fact that you include them in a lawsuit. A law firm failed to include the guarantor in their case. As a result, a deficiency judgement was reversed.
That mistake may sound simple, but it happens all too often. The whole purpose of the guarantor is that they can be held accountable for the actions of the borrower. For that liability to be properly utilized, the guarantor must be included in any legal proceedings equally alongside the borrower. Involving a guarantor is the best way for an Asset Manager or Loan Portfolio Manager to get those commercial properties performing again and see a return on their investment.
If you are looking for a law firm that has experience and know-how to handle these kinds of cases, give The Reyes Law Group a call at (954) 369-1993 or contact us online. We recognize the importance of a guarantor and understand how to best serve your case every step of the way. At The Reyes Law Group, we not only defend your investment, but preserve your rights and value your trust every single day.
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