Posted by james on July 15, 2009 at 19:42:11:
In Reply to: Re: Personal Guaranty posted by DMcGehee.Sf on July 09, 2009 at 01:12:06:
Thanks for your comment. I am very concerned that the bank might increase my rate from 6.25 to whatever at the next renewal. With the personal guarentee I would have to except what every rate they offer at the next renewal in order to maintain my credit rating. The loan is at about 2 mil with little to no equity. It is a difficult to manage, and I think it would be very hard to sell in this economy. I was thinking that at renewal I would have more power to negotiate the loan if I was not tied to it personally. My banker is very nice; however, he did let me know that I could not borrow any more money from them due to changes in bank lending habits.