News & Press: Member News

Georgia Supreme Court "Critical Decision" Re. Guarantor's Liability for a Deficiency

Friday, July 21, 2017   (1 Comments)
Posted by: Chip Deale
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In the latest posting on the ACMA Community Blog, Fellow Johnny D. Latzak, Jr. and his Bryan Cave LLP colleague Mica Germain write of a mid-April Supreme Court of Georgia ruling that is "another critical decision in a line of cases which, together, create the framework for a guarantor's liability for a deficiency after a foreclosure has been conducted."

Latzak and Germain conclude in their blog post that, "Undoubtedly, lenders will continue to watch as this line of judicial rulings advances to define the boundaries of guarantor liability and shape the laws around mortgage lending."

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John C. Murray says...
Posted Wednesday, August 16, 2017
Deficiency Judgments – Do Choice-of-Law Provisions in Loan Documents Control? By John C. Murray © 2017 In an interesting and unusual case recently decided by the Florida Appellate Court, Bonita Real Estate Partners, LLC v. SLF IV Lending, L.P., 2017 Fla. App. LEXIS 10102 (July 14, 2017), the court held that Florida law governed a deficiency judgment because the foreclosure of the subject property occurred in Florida and the deficiency was a continuation of the foreclosure proceeding. The court rejected the lender’s argument that Texas law applied with respect to the deficiency since the loan documents stated that Texas law governed everything except “the creation, perfection, priority and enforcement of” the mortgage lien. The facts in this case are straightforward. Bonita Real Estate Partners, LLC, and Alico Retail Holdings, LLC (“Borrowers”), borrowed $6,100,000 from SLF IV Lending, LP (“Lender”) in 2011 to develop real property in Lee County, Florida. The loan was guarant