A Loan with financed property as guarantee involves a loan that is supported or “backed” by some form of collateral. Often this is real estate, but it can also be equipment, accounts receivable or future credit card receipts. This collateral enables the lender to more confidently qualify a borrower who otherwise might be unable to demonstrate adequate creditworthiness or may not have a large enough down payment on an investment property. This type of loan is sometimes referred to as a bridge loan because it allows you to purchase a new property before selling your current one.

emprestimo com imovel financiado de garantia with financed properties as guarantees can have very different structures depending on the specifics of the loan. Some guarantees are full recourse, meaning the lender can go after the guarantor’s personal assets in addition to the collateral that secures the loan. Others are non-recourse, which is less risky for borrowers and is often the case with government-backed loans such as FHA and VA.

Other kinds of guaranteed loans include carve-out guaranties that limit liability to bad acts and loss events. For example, an attorney at Geraci once drafted a guaranty that was tied to the value of a hotel project, leaving the guarantors responsible for only a small percentage of the overall debt.

Financing Construction on Your Own Land: What You Need to Know

Other structures of loan guarantees depend on the particulars of each transaction and may be difficult to decipher. Be especially careful when reading the wording in a guaranty agreement as many contain ominous adverbs such as unconditionally and irrevocably along with modifiers like continuing and unlimited, which can dramatically impact how much you might be held liable for in the event of default.…