Legal Question in Real Estate Law in California

Scenario: There is an investment property is held in an LLC\nThere is a real estate loan on the property guaranteed by the LLC members\nThe borrowers are in the process of trying to work out a loan modification with the bank.\nQuestion: If loan payments are not made, how will it affect the LLC members\' credit scores, since the property and the loan are in the name of the LLC?\n


Asked on 7/28/09, 11:47 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Loan guarantees make them 'borrowers' obligated on the loans, and subject to collection, lawsuit, judgment, and negative credit reporting. That's the whole purpose of lenders demanding guarantees. If you/they need legal counsel to help in this matter, feel free to contact me.

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Answered on 7/29/09, 4:06 pm


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