A guarantee to pay a mortgage if a debtor defaults in paying it is the same as any other contract, enforcing it requires proving that the person that you want to hold responsible is liable.

Interested in knowing your rights and obligations in a property law proceeding? Schedule a consultation and you'll be able to meet with a Palm Beach Foreclosure Attorney. To do so, just call our office at (561)472-0919 or complete and submit a Consultation Request form to the right of your screen and we'll follow up with you.

Grove One Realty and others challenging a foreclosure judgment brought the matter of Grove One Realty, LLC v. Ocean Bank before the Florida 3rd DCA (appeals court.) The appeals court issued its decision on November 30, 2011.

Grove One Realty, LLC, (Grove Realty) and Grove One Management, LCC, (Grove Management) obtained two mortgages from Ocean Bank in 2003 and one mortgage in 2005. Guy Mitchell guaranteed all three notes, and Amelia Mitchell guaranteed the 2003 mortgages.

Ocean Bank initiated a single foreclosure proceeding regarding all three mortgages in 2008. 

The trial court subsequently granted Ocean Bank’s request for a judgment without a trial regarding the foreclosure on all three mortgages. This decision stated that both Guy and Amelia Mitchell, as guarantors, shared liability with Grove One and Grove Management for the defaults on all three mortgages.

The trial court reversed the portion of the trial court’s decision that determined that Amelia Mitchell had liability for the 2005 mortgage. The trial court determined that the proof that was presented in the trial court proceedings showed that Ms. Mitchell had not guaranteed that mortgage.

The appeals court noted that Ocean Bank admitted that Amelia Mitchell could not he held liable for the default on the 2005 mortgage because she did not sign a personal guaranty regarding that debt.

The appeals court decision reflects the fundamental legal principle that someone cannot be held liable for a debt for which they lack any responsibility.

Interested in knowing your rights and obligations in a property law proceeding? Schedule a consultation and you'll be able to meet with a Palm Beach Foreclosure Attorney. To do so, just call our office at (561)472-0919 or complete and submit a Consultation Request form to the right of your screen and we'll follow up with you.