QUESTION
I want to be removed as a guarantor on a loan since it was signed based on fraudulent information and a breach of contract.
Asked on Mar 09th, 2020 on Breach of Contract - New Jersey
More details to this question:
I signed as a guarantor with my house as collateral on a business loan my husband made with business partners. Shortly after opening, the partners reneged on their contract with my husband and defaulted on his payments, as well as misappropriated funds from the SBA loan to secure items not labeled under the loan. Due to the fraud, misrepresentation and breach, I want my home removed as collateral and all credit agreements, etc., terminated.
1 ANSWER
If I understnad you correctly, you agreed to cosign a business loan by a third party, and to put up your house as collateral, based on misrepresentatyions by your husband's partners. However, you don't claim any fraud on the part of the lenders. If those are the facts, you have no basis to rescind your obligations to the lenders, but can sue your husband's partners for damages you sustain as a result of the fraud.
Answered on Mar 09th, 2020 at 2:54 PM