This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Some Banks Go Too Far In Lawsuits Against Guarantors, Says Hackard Law

SACRAMENTO, Calif., July 22, 2013 /PRNewswire/ --  Hackard Law attorneys regularly represent and defend California borrowers and guarantors in lender-initiated lawsuits. This litigation often involves the defense of prejudgment attachment proceedings that are ancillary to guarantee and judicial foreclosure actions. We begin the process of representation by a preliminary review of our prospective client's case and possible defenses to any lender action. A part of this review is securing an understanding of the terms of the loan agreement, promissory note, deed of trust and commercial guaranty that are typically included in commercial real estate loan documentation.  We are regularly asked to review cases rife with the elements of lender-initiated sham guarantees.

(Logo: http://photos.prnewswire.com/prnh/20121023/SF98552LOGO)

The sham guaranty defense in commercial real estate loan litigation is based upon the principle that a borrower cannot also be the guarantor of his own debt. The essence of the defense is that the documents have been structured so that the guarantor has become the de facto borrower - in California a borrower entitled to the unwaivable anti-deficiency protections afforded by statutory and case law.

California law has been trending toward a more expansive protection of de facto borrowers even if they are nominally designated as guarantors in lender documents. These protections are intensively fact-based. Facts that must be addressed in any guarantor defense include whether the borrower functioned as a genuine entity as distinguished from a mere shell. This can easily arise when a borrower is an inter-vivos or living trust and the guarantor is the settlor, trustee and beneficiary of the trust. There are numerous additional inquiries that must be made to gain a full understanding of whether the lender purposely structured the loan transaction to preclude the guarantor from the protections of California's anti-deficiency laws.

About Hackard Law, a Professional Law Corporation Hackard Law, a Professional Law Corporation, focuses on transactional and litigation matters. Michael A. Hackard is the principal attorney of Hackard Law - a Northern California law firm representing families with extensive business interests as well as clients impoverished by others' wrongdoing. For information about Michael A. Hackard, please visit:

http://www.avvo.com/attorneys/95655-ca-michael-hackard-226264.html http://www.guarantorsdefenselaw.com  http://www.hackardlaw.com

CONTACT Hackard Law
10630 Mather Blvd.
 Mather, Sacramento County, CA 95655
Phone: 916-313-3030

SOURCE Hackard Law

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs