FAQ - PERSONAL GUARANTY'S - FORECLOSURE IN CALIFORNIA
PERSONAL
GUARANTY'S:
QUESTION: What if I have signed a “Guaranty” for someone on the debt or they have signed one for my debt?
ANSWER: You or they could be liable for the debt or judgment to the extent it falls short of paying off the lender, even on a non-deficiency debt, depending upon how the Guaranty is worded.
Under certain circumstances, it is possible for one who guaranteed a non-recourse debt or judgment to be held liable for the deficiency of the borrower guaranteed, not as a matter of judgment, mortgage or trust deed law, but under the law of guaranty. Guarantees must be carefully read to determine what they cover and how extensively.