I am seeking assistance and guidance please.
HISTORY:
My business unfortunately folded in 2008. I took an SBA loan out (10K) in
2007 that was not fully paid for when the business went under. I have heard
nothing, seen no mail, no calls, etc. I am an easy person to find but have
heard nothing.
RECENTLY:
I tried to buy a house through FHA and found that I was on the CAIVRS Report.
OK, No problem. I never heard of this report, but I know I had the loan out
so I figured something like this would pop up. So I contacted the SBA who
didn't help me or provide me any of my contract information and said my
account was in default (which I already knew). The woman on the phone didn't
even know who the loan was through (B of A). All I got was an account number
and a balance (13K) interest is a kicker ain't it?
INSTRUCTIONS:
I was directed to a collection company that was initially misrepresented as a
government agency, but later found out it was just a collection company
contracted through the Treasury Dept(very unethical history based on
research). The collection agency said I owed them money and to fill out a
packet. The collection company also threatened to take my paychecks during
the call, which I didn't believe anyway. The packet required very sensative
personal information that I never had to give out to get the loan in the
first place. Now knowing that I was dealing with a collection agency, I sent
a certified letter requesting all my documentation and especially the
document that states I am personally responsible for the loan (which doesn't
exist because I never signed a personal guarantee). I have not heard from
that collection company since. There are no reports of this to any of the
credit bureaus, I do not have any liens on my credit or elsewhere, B of A
directed me to SBA and has no record of my loan, I have no tax liens, I get
all my tax refunds on time, basically there is no information form anyone,
coming from anywhere, to signify that I owe this money. Oh! During the few
months I was dealing with the collection agency, I did receive a few demand
letters, but they were addressed in the business name only???
DIRECTION:
I am desperate to solve this matter. I am well back on my feet. I never
signed a personal guarantee, but to clear it quickly, I would be willing to
offer up some money (possibly half of original balance) as an OIC to make it
go away...Any suggestions will be greatly appreciated.
Harry Greenhouse | Window Shopper |
10/9/2012 - 5:06 pm
Very likely that you signed personally - the nasty collection agency hired by
the department of treasury you are referring to typically won't waste its
time or resources pursuing you unless there's a personal guarantee. These
collection agencies are authorized to use any collection tool in their
arsenal, which includes wage garnishment. I would look into your state's laws
regarding wage garnishment - some states do NOT allow a debtor's wage to be
garnished (Texas for example), while others have varying degrees of
protection based on classification like head of household, etc. As someone
mentioned earlier, the documents they are requesting from you are required in
order to consider any type of debt forgiveness. Good luck.
Hello, and sorry to hear about your ordeal. Just so you know where my
comments are coming from, I was a VP for an SBA lender, and oversaw a $400
Million delinquent SBA portfolio. I now am a full time consultant that works
on nothing but resolving SBA default situations.
Here are my thoughts:
1) I would be surprised if you did not pledge your personal guarantee, as
almost all SBA loans require it. Nonetheless, it was a good idea by you to
request the documentation.
2) Administrative wage garnishment is possible, even if a judgement was never
obtained (although it is not allowed in certain states).
3) The reason your balance went from $10K to $13K is not because of accruing
interest. When a file goes to one of the collection companies (there are
about 5 different ones that the Treasury uses), they add on a one time fee of
28%.
4) They will consider a settlement, but the forms they want you to fill out
are an absolute requirement, and they are not flexible about it. The reason
is because they want proof that you can't afford the full balance. If you can
afford to pay off the whole loan, they won't be willing to settle. If you
can't afford to pay them a lump sum and want to make payments over time, they
will require you to pay it in full.
Best of luck with it!
Jason Milleisen, Founder, Distressed Loan Advisors
Hello, and sorry to hear about your ordeal. Just so you know where my comments are coming from, I was a VP for an SBA lender, and oversaw a $400 Million delinquent SBA portfolio. I now am a full time consultant that works on nothing but resolving SBA default situations.
Here are my thoughts:
1) I would be surprised if you did not pledge your personal guarantee, as almost all SBA loans require it. Nonetheless, it was a good idea by you to request the documentation.
2) Administrative wage garnishment is possible, even if a judgement was never obtained (although it is not allowed in certain states).
3) The reason your balance went from $10K to $13K is not because of accruing interest. When a file goes to one of the collection companies (there are about 5 different ones that the Treasury uses), they add on a one time fee of 28%.
4) They will consider a settlement, but the forms they want you to fill out are an absolute requirement, and they are not flexible about it. The reason is because they want proof that you can't afford the full balance. If you can afford to pay off the whole loan, they won't be willing to settle. If you can't afford to pay them a lump sum and want to make payments over time, they will require you to pay it in full.
Best of luck with it!
Thanks. In response:
1) I have copies of all the paperwork I signed from the get go. There is no
personal guarantee in that file. If I did sign one, then I do not have a copy
of it and nobody will send me a copy...as previously requested.
2) Where is my administrative garnishment if there could be one?
Thanks. In response:
1) I have copies of all the paperwork I signed from the get go. There is no personal guarantee in that file. If I did sign one, then I do not have a copy of it and nobody will send me a copy...as previously requested.
2) Where is my administrative garnishment if there could be one?
3) Thanks for the clarification on this point. :)
4) Thanks for the clarification on this point. :)
What he means is they would subtract part of the loan from your wages every
month or week although this is not allowed in some states..
Harry Greenhouse | Window Shopper | 10/9/2012 - 5:06 pm
the department of treasury you are referring to typically won't waste its
time or resources pursuing you unless there's a personal guarantee. These
collection agencies are authorized to use any collection tool in their
arsenal, which includes wage garnishment. I would look into your state's laws
regarding wage garnishment - some states do NOT allow a debtor's wage to be
garnished (Texas for example), while others have varying degrees of
protection based on classification like head of household, etc. As someone
mentioned earlier, the documents they are requesting from you are required in
order to consider any type of debt forgiveness. Good luck.
DLA | Performer | 5/17/2012 - 7:31 am
comments are coming from, I was a VP for an SBA lender, and oversaw a $400
Million delinquent SBA portfolio. I now am a full time consultant that works
on nothing but resolving SBA default situations.
Here are my thoughts:
1) I would be surprised if you did not pledge your personal guarantee, as
almost all SBA loans require it. Nonetheless, it was a good idea by you to
request the documentation.
2) Administrative wage garnishment is possible, even if a judgement was never
obtained (although it is not allowed in certain states).
3) The reason your balance went from $10K to $13K is not because of accruing
interest. When a file goes to one of the collection companies (there are
about 5 different ones that the Treasury uses), they add on a one time fee of
28%.
4) They will consider a settlement, but the forms they want you to fill out
are an absolute requirement, and they are not flexible about it. The reason
is because they want proof that you can't afford the full balance. If you can
afford to pay off the whole loan, they won't be willing to settle. If you
can't afford to pay them a lump sum and want to make payments over time, they
will require you to pay it in full.
Best of luck with it!
hostilesolutions | Window Shopper | 5/22/2012 - 1:26 pm
1) I have copies of all the paperwork I signed from the get go. There is no
personal guarantee in that file. If I did sign one, then I do not have a copy
of it and nobody will send me a copy...as previously requested.
2) Where is my administrative garnishment if there could be one?
3) Thanks for the clarification on this point. :)
4) Thanks for the clarification on this point. :)
PDLoans | Window Shopper | 8/5/2012 - 4:14 am
month or week although this is not allowed in some states..
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