SBA Loan Foreclosure - Process Overview
We help people who need to avoid SBA loan default by advising about solutions to various SBA loan problems including SBA loan foreclosure.
We often provide complimentary case evaluations for SBA loan debtors who are currently dealing with the DOT (Department of Treasury) for an old SBA debt that the DOT claims is “due and owing.” More often than not, when the Firm is hired, we not only try to obtain the client’s documents from their former “non-attorney” representatives, but also the subject loan and debt records from the SBA and the Bureau of Fiscal Service. We do this in order to carefully examine what happened and if there are any potential issues that may affect the client’s liability and the nature and extent of the SBA debt based on the client’s financial ability to repay.
In several reviews of our cases, we sometimes find that the SBA debtors had sought help from an “SBA debt settlement company.” The SBA debtors’ problems were never resolved properly and that their cases had eventually been referred to the DOT even after having been assured by the SBA debt settlement company salesperson that it would settle the SBA loan debt with either the participating lender or the SBA, itself through an SBA OIC (SBA Offer in Compromise).
Of course, one of the only things the “SBA debt settlement company” provided by way of assistance were some worthless “cut and paste” financial documents and so-called “SBA” advice that made no sense under the current SBA Standard Operating Procedures (SOPs) and Code of Federal Regulations (CFRs). When these non-attorney SBA "debt consultants" try to provide advice on SBA SOPs, applicable CFRs or federal bankruptcy law, they are conceivably violating prohibitions against non-attorneys practicing law without a license. Needless to say, when the SBA debtors seek our assistance, we ultimately find, that had they initially sought representation from federally authorized and qualified SBA or DOT counsel, their current situation could have possibly been avoided.
We, at Protect Law Group, APC, take offense that these “SBA debt settlement companies” continue to advertise their “SBA” debt resolution services as they are arguably engaging in the unauthorized practice of law. But, the fact that people with SBA loan problems still sign up for these “services” raises the question why do people believe the junk they are selling?
We think the real reason is twofold. First, people generally want to pay back the SBA debt and they believe that payment of some of the SBA debt is better than none at all. The second reason is fear of having to file bankruptcy. People are afraid of losing property and of the damage to their credit. While these are legitimate concerns, it does not explain why folks do not seek out a competent and federally authorized SBA professional to advise on these complex issues yet they fall hook, line and sinker for some fast-talking snake oil SBA debt settlement salesman over the telephone.
If you are facing an SBA debt or DOT collection issues, we implore you to seek out a federally authorized SBA or DOT attorney. Just because you seek advice, it does not commit you to signing up with the person conducting your Case Evaluation. But, because our Firm attorneys are experienced in all aspects of the SBA administrative debt collection process and other alternatives including bankruptcy, we can offer you meaningful solutions to your SBA debt or DOT collection problems.
You should not have to struggle to settle SBA debt on your own. Instead, turn to one of our attorneys who specializes in SBA OIC claims. We are dedicated to helping you settle SBA loan default.
If you are struggling with circumstances that involve SBA loan default, you deserve professional help! Our attorneys all know how to win SBA OIC cases. If you contact us, we can help you settle SBA debt once and for all. After you schedule an appointment, you confer with a dedicated SBA OIC lawyer who will help you through your administrative legal battle. After your claim is resolved, you never again have to worry about your SBA loan default problem haunting you. Our team of lawyers has assisted many clients through the years. Now it is your turn! You truly can settle SBA debt for good!
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Client’s small business obtained an SBA 7(a) loan for $150,000. He and his wife signed personal guarantees and pledged their home as collateral. The SBA loan went into default, the term or maturity date was accelerated and demand for payment of the entire amount claimed was made. The SBA lender’s note gave it the right to adjust the default interest rate from 7.25% to 18% per annum. The business filed for Chapter 11 bankruptcy but was dismissed after 3 years due to its inability to continue with payments under the plan. Clients wanted to file for Chapter 7 bankruptcy, which would have been a mistake as their home had significant equity to repay the SBA loan balance in full as the Trustee would likely seize and sell the home to repay the secured and unsecured creditors. However, the SBA lender opted to pursue the SBA 7(a) Guaranty and subsequently assigned the loan and the right to enforce collection to the SBA. Clients then received the SBA Official 60-Day Notice and hired the Firm to respond to it and negotiate on their behalf. Clients disputed the SBA’s alleged balance of $148,000, as several payments made to the SBA lender during the Chapter 11 reorganization were not accounted for. To challenge the SBA’s claimed debt balance, the Firm Attorneys initiated expedited discovery to obtain government records. SBA records disclosed the true amount owed was about $97,000. Moreover, because the Clients’ home had significant equity, they were not eligible for an Offer in Compromise or an immediate Release of Lien for Consideration, despite being incorrectly advised by non-attorney consulting companies that they were. Instead, our Firm Attorneys recommended a Workout of $97,000 spread over a lengthy term and a waiver of the applicable interest rate making the monthly payment affordable. After back and forth negotiations, SBA approved the Workout proposal, thereby saving the home from imminent foreclosure and reducing the Clients' liability by nearly $81,000 in incorrect principal balance, accrued interest, and statutory collection fees.
Clients personally guaranteed SBA 504 loan balance of $750,000. Clients also pledged the business’s equipment/inventory and their home as additional collateral. Clients had agreed to a voluntary sale of their home to pay down the balance. We intervened and rejected the proposed home sale. Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.
The client personally guaranteed an SBA 504 loan balance of $375,000. Debt had been cross-referred to the Treasury at the time we got involved with the case. We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.
.jpg)
