Posted by DMcGehee.Sf on July 09, 2009 at 01:12:06:
In Reply to: Re: Personal Guaranty posted by cam on July 04, 2009 at 10:09:09:
A lot of banks are actually doing this. As regulations tighten and the economy worsens, many lenders are trying to make their portfolios as strong as possible by getting additional collateral or personal guarantees.
Since you have a good relationship w. your banker, set up a meeting and discuss this issue. If you are still very strong financially and they have nothing to worry about, show them some updated financials. If they are still insistent on a personal guarantee, if you are uncomfortable signing one, offer to guarantee half of the loan.
Don't refuse unless you do not care about the relationship going forward. If you have a lot of equity in real estate, perhaps think about offering them an unrecorded deed or abundance of caution to make them more comfortable. At the end of the day, the lender just wants to make sure that their loan is safe, even if it is year 3.
Going forward it is going to be very hard to avoid personal guarantees, but retroactive deals are a different story.
D.
- Re: Personal Guaranty james 19:42:11 07/15/09 (0)