Obtaining a Money Judgment Against Guarantors While Also Pursuing Foreclosure of a Mortgage

By: Douglas L. Waldorf, Jr.

Recently, the Fifth District Court of Appeals decided Fort Plantation Investments, LLC v. Ironstone Bank , a case that may be of interest to lenders considering their options in pursuing a borrower for mortgage foreclosure and also a money judgment against guarantors. The good news is that Fort Plantation Investments is another case supporting the bank’s ability to do both simultaneously.

The bank sued the borrower on the note and for mortgage foreclosure and also the guarantors on their obligations under the guaranty agreements. The trial court entered a summary judgment in favor of the bank on the foreclosure count and also a money judgment against the guarantors. On appeal, the borrower and guarantors argued that the bank was not entitled to obtain a money judgment until it sought deficiency judgment after the foreclosure sale. The appellate court disagreed, holding that, if the guaranty is unconditional, the lender can pursue both a mortgage foreclosure and an action against the guarantors in the same lawsuit and can also obtain a money judgment against the guarantors at the same time as the foreclosure judgment.