- Is a promise made by a someone (the guarantor) to assume responsibility of a mortgage if the borrower defaults on a loan.
promise to pay loan, fall back person, fail over
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.