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Offer in Compromise. Will I lose my house if I am in default.

by dtod, Window Shopper

  • Created: October 31, 2012, 3:48 pm
  • Updated: October 31, 2012, 3:49 pm
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2 comments
It is entirely possible to lose your house to the SBA if you fail to respond timely and if there is equity.However the SBA would much prefer to resolve your defaulted debt with an Offer In Compromise which will afford you the opportunity to pay them a percentage of your equity over time, it is really a great opportunity to resolve the original debt with a discounted offer based on your personal net worth, and then pay it over 1-5 years. This works well, and can result in an excellent conclusion. Keep in mind if your spouse did not sign the guaranty only your half of the equity is available. Do not wait too long as if you do and the file is sent over to the US Treasury for resolution, you are sunk as they are not interested in compromising to the degree the SBA is. Jump on this fast, get professional help and enjoy what we call affordable losses instead of bone crushing disaster. Don Todrin, Second Wind Consultants Inc.
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DLA | Performer | 11/15/2012 - 9:04 pm

I agree with the sentiment that the Treasury is all but impossible to deal
with in many situations. It should also be noted that many lenders are not
even up to speed when it comes to SBA rules. I recently had a bank tell me
they needed the SBA's approval to release a lien...they had been able to
stonewall my client using that excuse, but Inhad to explain that for
preferred lenders, the SBA doesn't even require notification of a lien
release. This is a good example of why having a workout professional on your
side can truly benefit you.
Jason Milleisen, Founder, Distressed Loan Advisors
Professional Web Site: http://www.JasonTees.com

jtowbin | Community Moderator | 11/1/2012 - 1:40 pm

Hi Don, Thank you for sharing this information. There's also been this conversation about Offer In Compomise on other discussion boards that may be of interest to you.