Every real estate developer has signed a guaranty. And every real estate developer knows that, once you make the business deal about whether the guaranty is unlimited or limited, and is joint and several or several, there’s not much more to be done. The lender’s got you, and you’ll just have to be tough at the workout table.
You might be able to do a bit better than that when you understand some of the underlying rights of a guarantor vis-à-vis the borrower and other guarantors, especially the rights that you give away as "boilerplate." Many of these opportunities for you to pull something out of the ashes can be negotiated.
The lender wants a guaranty of payment, not of collection. Your typical instruction to your lawyer is to require the lender to go after the collateral first, which is really a guaranty of collection. The negotiation is likely to go nowhere. But your request lays the groundwork for something that you are more likely to get the lender to change, and that has
