What if any effectivness does a personal guarantee have when included on a Note or Deed of Trust in Arizona?
2 attorney answers
It provides you one more way to collect should the principal debtor default. It is NOT a guarantee against things like bankruptcy or declining property values.
If you are unclear on how this works, I would strongly suggest you consult with a local attorney to insure you are secured as much as possible and reasonable under the circumstances.
A personal guarantee is an important protection and I would almost always require one as a lender. However, it needs to be drafted properly and in conjunction with the other loan documents. There are specific Arizona statutes on this issue, and they must be followed, or the guarantee could be worthless.