Guarantor liability for a mortgage generally means what?

• A. jointly and severally liable
• B. liability limited to the value of the guarantee
• C. liability only after court order
• D. no liability beyond security

Answer: (A)

Guarantor liability is typically joint and several with the borrower. That means if the borrower defaults, the lender can demand the full amount from the guarantor, or from the borrower, or from both. The guarantor’s obligation isn’t limited to the value of the security or capped by a court order; the guarantee is an independent promise to pay the debt, so the lender has a strong remedy to recover what’s owed. The security (the mortgage on the property) helps the lender recover, but it does not limit the guarantor’s liability to the property’s value.