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My father-in-law who gave his son, my husband a private mortgage for our home has included a guaranty that I have to sign in adding my name to the house and the mortgage. How does this affect me legally? What does this phrase mean... "No termination hereof shall be effected by my death or his death or the death of both of us. I waive notice of acceptance hereof and of presentment, demand, protest and notice of non-payment or protests as to the note or obligation, and all exemptions and homestead laws and any other demands and notices required by law and I waive all set-offs and counterclaims.
State/Country of Question: Connecticut Already Tried: I have asked my husband of 5 years to please put my name on our home. During these five years I have paid all the property taxes, contributed to the home expenses and furnished the home that we jointly reside. We are in our second marriage and I felt that it was in my right to be added to the mortgage and deed so that my investments are not in vain and that I have the rights to staying in this home until death should my husband pre-decease me. I just want to make sure I'm not signing a document that will hurt me in the long run or deny me my rights as an owner.
The guaranty means that if there is a default you are personally liable for the debt. The language above you asked about seeks to accelerate matters in the event of default by primarily not requiring notice of default as well as waiving defenses that you both would have.
I don't understand the phrase, set-offs and counterclaims. What does it mean with the wording, "You may, without notice to me, renew or extend any of the mortgage and morgage note obligations," also what does this mean? "No payment by me as a guarantor hereunder shall entitle me, by subrogation or otherwise , to any payment by the ........... under or out of the his property, except aftyer payment in full to you of all amounts payable by him, contingently, absolutely or otherwise, to you. This guaranty shall bind my respective heirs, administrators, personal representatives, successors, and assigns, and shall enure to you, your survivor and the survivor's successors and assigns, including but not limited to any party to whom you may assign any item or items of paper to which I hereby waive notice of any such assignment. All of your rights are cumulative and not alternative.
set-offs and counterclaims. CANNOT CLAIM MONEY IS DUE TO YOU TO REDUCE MONEY DUE TO THE LENDER. CANT RAISE OTHER CLAIMS. What does it mean with the wording, "You may, without notice to me, renew or extend any of the mortgage and morgage note obligations," UNCLEAR SINCE HE IS THE LENDER SO HE WOULD NEED NOTICE. THIS MAY BE A FORM IN WHICH NO EVERY CLAUSE APPLIES. also what does this mean? "No payment by me as a guarantor hereunder shall entitle me, by subrogation or otherwise , to any payment by the ........... under or out of the his property, except aftyer payment in full to you of all amounts payable by him, contingently, absolutely or otherwise, to you. This guaranty shall bind my respective heirs, administrators, personal representatives, successors, and assigns, and shall enure to you, your survivor and the survivor's successors and assigns, including but not limited to any party to whom you may assign any item or items of paper to which I hereby waive notice of any such assignment. All of your rights are cumulative and not alternative. IT MEANS THE GUARANTOR IS LIABLE FOR PAYMENTS. IT SEEKS TO ALSO HOLD YOUR DESCENDANTS AS LIABLE.
Is it safe to sign?
The language is overbroad and I do not like the waiver of counterclaims and offsets. I also from your position see no reason for you to be a guarantor although as a lender I see why he wants additional security. Consider having a lawyer review it in full and also negotiate its terms for you. It is quite an obligation. Kindly accept my answer.
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