What is the name of your state? Michigan
About 4 years ago, I signed a personal guarantee on a mortgage for my LLC Realestate Business. The mortgage amount was $150,000. About 2 years ago, I sold the business including the building which was the only asset this business had. Then last summer, the new owner of the business defaulted on the mortgage payments to the bank and so the Bank foreclosed and sued us all "Jointly and Severally" for the deficiency. I sued the business with a cross claim in the same court action. The Bank got a judgment against the business and me personally for $50,000 Jointly and Severally. And I won a judgment in the cross-claim for the same amount against the business.
But now the Bank tells the new owner of the business that if he buys the forclosed building back from them for $100,000, then they will not require him or his business to pay any of the $50,000 deficiency judgment they have against his business!
Is this legal? Can the bank forgive all the debt that the business owes in the deficiency judgment and then enforce the personal guarantee judgment against me for the full amount? I thought the court would order a 50/50 split on the judgment money owed to the bank and that my cross claim judgement that I won would cancel out the judgment with the bank.
About 4 years ago, I signed a personal guarantee on a mortgage for my LLC Realestate Business. The mortgage amount was $150,000. About 2 years ago, I sold the business including the building which was the only asset this business had. Then last summer, the new owner of the business defaulted on the mortgage payments to the bank and so the Bank foreclosed and sued us all "Jointly and Severally" for the deficiency. I sued the business with a cross claim in the same court action. The Bank got a judgment against the business and me personally for $50,000 Jointly and Severally. And I won a judgment in the cross-claim for the same amount against the business.
But now the Bank tells the new owner of the business that if he buys the forclosed building back from them for $100,000, then they will not require him or his business to pay any of the $50,000 deficiency judgment they have against his business!
Is this legal? Can the bank forgive all the debt that the business owes in the deficiency judgment and then enforce the personal guarantee judgment against me for the full amount? I thought the court would order a 50/50 split on the judgment money owed to the bank and that my cross claim judgement that I won would cancel out the judgment with the bank.