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Old 11-19-2008, 12:15 PM
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Bank default

What is the name of your state (only U.S. law)? WI
I have a small business (LLC). Last year I needed to borrow more money ($40,000) from my bank. They had me sign a personal guaranty and a 3rd position mortgage on my home. Business is worse now - what rights do they have against my home should I default?
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Old 11-19-2008, 12:35 PM
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They have full rights against the home. The only limitation is that on sale or foreclosure, they will be paid after the first and second are satisfied.
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Old 11-19-2008, 12:46 PM
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Quote:
Originally Posted by nspanther1 View Post
What is the name of your state (only U.S. law)? WI
I have a small business (LLC). Last year I needed to borrow more money ($40,000) from my bank. They had me sign a personal guaranty and a 3rd position mortgage on my home. Business is worse now - what rights do they have against my home should I default?
It they are in third position the first and second have to be paid first in the event of the sale of the home. Depending on market conditions, there may not be much.

Since you did sign a personal guarantee, they can sue you personally and go after any assets you hold.
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