BizLeaseCheck
Michigan guaranty guide

Personal Guaranty Guide for Michigan

A borrower-focused guide to Michigan guaranty exposure, SBA owner guarantees, collateral sales, and post-judgment collection risk.

Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team

General information, not legal or financial advice.

Analyze a guaranty PDF All guaranty guides

Overview

Michigan guaranties should be reviewed for unconditional payment language, future advances, waiver of defenses, collateral pledges, and whether the guarantor is released after payoff or ownership transfer.

Michigan law includes statutory treatment for confession of judgment and foreclosure-by-advertisement deficiency defenses. Those rules are technical, and guarantor waivers can change the practical risk.

Enforceability topics to check

Confession of judgment / cognovitMedium confidence

Michigan has a confession-of-judgment statute. Do not assume a warrant-of-attorney or cognovit provision is harmless; review the exact language, procedure, and any consumer or licensing restrictions.

MCL § 600.2906
Deficiency judgments after collateral saleMedium confidence

Michigan allows defendants in certain foreclosure-by-advertisement deficiency actions to raise fair-value defenses when the mortgagee or holder buys the property. Guarantor scope and waivers need Michigan counsel review.

MCL § 600.3280
Spousal signature and ECOAHigh confidence

Michigan is not a community-property state. ECOA / Regulation B still limits when a lender can require a spouse or additional party to guarantee.

CFPB Regulation B / ECOA
Statute of limitationsMedium confidence

Michigan contract limitation periods depend on the instrument, but many breach-of-contract claims are subject to a six-year period. Demand, acceleration, payment, and suretyship issues can change the analysis.

MCL § 600.5807
Homestead exemptionMedium confidence

Michigan exempts certain property from execution, including specified homestead interests. Verify current dollar limits, tenancy-by-the-entirety issues, liens, and bankruptcy alternatives before relying on the exemption.

MCL § 600.6023

Borrower protections to negotiate

  • Preserve Michigan fair-value and commercially reasonable sale defenses where collateral is sold.
  • Cap the guaranty and require written consent for future advances, extensions, and material modifications.
  • Avoid broad waivers of notice, subrogation, reimbursement, and impairment-of-collateral defenses without counsel.
  • Keep spouse signatures limited to genuine collateral or ownership needs, not marital status.
  • Require release after payoff, refinance, sale of the business, or a negotiated burn-down schedule.

Official resources

SBA Form 148 — Unconditional Guarantee SBA SOP 50 10 — Lender and Development Company Loan Programs 13 CFR § 120.160 — SBA loan conditions CFPB Regulation B / ECOA — 12 CFR Part 1002 MCL § 600.2906 — confession of judgment MCL § 600.3280 — foreclosure deficiency defenses MCL § 600.6023 — execution exemptions

Legal-review notes

Guide confidence marker: Medium confidence.

  • Michigan confession-of-judgment procedure and any consumer/lender licensing restrictions need counsel review before paid promotion.
  • Verify current Michigan exemption amounts and tenancy-by-the-entirety implications before making collection-risk claims.

Frequently asked questions

Can a Michigan guarantor challenge a foreclosure deficiency?

Sometimes. Michigan has fair-value defenses in specified foreclosure-by-advertisement deficiency actions, but guaranty wording and waivers need local counsel review.

Does Michigan community-property law make spouse signatures routine?

No. Michigan is not a community-property state, and ECOA limits when a spouse can be required to guarantee.

What Michigan guaranty clauses deserve the fastest review?

Prioritize confession-of-judgment language, unlimited continuing liability, future advances, waiver of defenses, collateral pledges, and no-release provisions.