Podcast Episode 3: “Mortgage Basics 3/9 – Personal Guarantees.”
The third part of this podcast mini series focuses on personal guarantees to secure a mortgage. This short episode discusses situations where a lender might require a third party to add their name to a mortgage contract as extra insurance.
B. Basic Principles of Foreclosure
Some general legal principles of foreclosure law continued:
iii) Personal Guarantees
Personal guarantees from third parties are sometimes required by lenders as additional security. If a default occurs in a mortgage, and if the lender cannot repay a mortgage loan from the sale of the land or from realizing on the borrower’s personal covenant, then the lender can call on the guarantor.
Contact Barry McGuire now. If your Alberta mortgage needs to be personally guaranteed, you’ll need an Alberta lawyer to help with the paperwork!