Guarantor

Definition

  • Is a promise made by a someone (the guarantor) to assume responsibility of a mortgage if the borrower defaults on a loan.

Synonyms
fail over, promise to pay loan, fall back person

Alternate Spellings
Guanateer, Guaranter

Related Terms and Acronyms

  • Co-signer Definition,
    • A person who signs a promissory note that is also signed by one or more other parties. All parties take responsibility for the debt if any of the others renege.
  • Completion Bond Definition,
    • Insurance purchased to make sure that an important project is completed, even if something unexpected happens, financial or otherwise.
  • Contract Definition,
    • An agreement between two or more parties that can be enforced by law.
  • Covenantor Definition,
    • A person who promises to be responsible for the repayment of a loan.
  • Credit Worthiness Definition,
    • How likely an individual or entity is to default on their debt.
  • Mortgagor Definition,
    • The borrower in a mortgage transaction.
  • Purchase Agreement Definition,
    • A written promise to pay a specific amount for a property at a specified time. The purchase agreement is a written statement of the offer, which both the borrower and the seller will sign if the offer is accepted.
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