After receiving a SBA line of credit for $50,000. the lender decided to call in the line of credit,demanding the entire outstanding balance immediately. That not being possible, I had asked to review my account to set up possible terms.Their response was that were not interested and I should look elsewhere. Being turned down due to poor credit and a lien filed by the lender, they exercised their rite to seizure.
After paying close to $100,000.in fees,interest and late charges, I receive a judgment on sept 08 for $51247.51.
To hold off judgment I borrowed $25000.from a family member. Since then I have paid another $12500. On 6/30/2009 I was served papers demanding payment for 52,268.00.
Does SBA monitor the collection procedure of their lenders?
How much more money can be demanded?
This last judgment has forced me to file for bankruptcy.
Hi DIDO59,
I don't want to sound like I'm flaming here but I think it would be in your best interest for me to provide you with a very firm and direct answer. This is based on my experience with the SBA and SBA backed loans. I am not a banker nor an attorney so this isn't legal advice.
It sounds like there's something very wrong or missing in what you've posted. In short you have paid 275% of the amount you borrowed. If you had that money available, why did you get an SBA loan that requires you to put all your personal assets on the line? Then in filing bankruptcy you either used an attorney or did it yourself. You've spent a lot of money to deal with this to the end of the story so I would think you used an attorney. If that's the case, they attorney should have been able to clearly tell you the EXACT status of the loan. In short, if you filed bankruptcy then you're likely on the upswing and everything should be much more clear.
I would be surprised if the bank could call in the loan. They also have an agreement with the SBA and are required to abide by it. They also have to the OK of the SBA to compromise the terms of the loan at all.
The first thing I would consider in the situation is stop paying anything but don't just sit on your hands. Second, locate your local SBA office and contact the representative there. You may get little help as I've found, the people in the local offices have little responsibility and oversight so they do little. Consider sending them a certified letter informing them of the exact details including your loan number, type of loan, your exact payment amounts and copies of the payment instruments (checks, etc.) and also visit the SBA website and get a name and address of a responsible party and copy them on everything.Basically, you want to be sure you copy the boss of the person in the local office so he/she'll get off their chair and do something.
Then I would contact an attorney. Most any one of them will spend at least 15 minutes with you if they feel it's worth their time. Don't commit to them and don't say you won't commit. Get information so you can make an informed decision.
Typically I would say you may be able to deal with this yourself, but if what you are saying is correct, you may be out a whole bunch of money. If your payments to the bank were outside of the agreement between the bank and the SBA and if their demands were written safely in their favor, that money could be gone and the SBA could have nothing to do with it. That all depends on your liquidity and that of the banks as well.
It sounds like the bank MAY still have a valid lien on your personal property. NEVER borrow anything from anyone to pay off a loan that involves 3 parties. IN addition to what you've paid, you could still lose your home if you own one.
I've had extensive experience with a screwed up bank and due to errors on the part of the bank and errors on the part of the SBA, I lost 7 figures and all my personal assets. I went from having an international technology company and a house on the water to just enough money to move my family and rent a two bedroom apartment. I learned a lot in the process and again, what you've posted doesn't sound right.
If you can post more specific details that makes your situation more clear, such as what the $100K paid, what the $12.5K paid, what they said to prompt you to pay these funds, I'd be more than happy to provide some constructive help.
Good luck
Hi DIDO59,
I don't want to sound like I'm flaming here but I think it would be in your best interest for me to provide you with a very firm and direct answer. This is based on my experience with the SBA and SBA backed loans. I am not a banker nor an attorney so this isn't legal advice.
It sounds like there's something very wrong or missing in what you've posted. In short you have paid 275% of the amount you borrowed. If you had that money available, why did you get an SBA loan that requires you to put all your personal assets on the line? Then in filing bankruptcy you either used an attorney or did it yourself. You've spent a lot of money to deal with this to the end of the story so I would think you used an attorney. If that's the case, they attorney should have been able to clearly tell you the EXACT status of the loan. In short, if you filed bankruptcy then you're likely on the upswing and everything should be much more clear.
I would be surprised if the bank could call in the loan. They also have an agreement with the SBA and are required to abide by it. They also have to the OK of the SBA to compromise the terms of the loan at all.
The first thing I would consider in the situation is stop paying anything but don't just sit on your hands. Second, locate your local SBA office and contact the representative there. You may get little help as I've found, the people in the local offices have little responsibility and oversight so they do little. Consider sending them a certified letter informing them of the exact details including your loan number, type of loan, your exact payment amounts and copies of the payment instruments (checks, etc.) and also visit the SBA website and get a name and address of a responsible party and copy them on everything.Basically, you want to be sure you copy the boss of the person in the local office so he/she'll get off their chair and do something.
Then I would contact an attorney. Most any one of them will spend at least 15 minutes with you if they feel it's worth their time. Don't commit to them and don't say you won't commit. Get information so you can make an informed decision.
Typically I would say you may be able to deal with this yourself, but if what you are saying is correct, you may be out a whole bunch of money. If your payments to the bank were outside of the agreement between the bank and the SBA and if their demands were written safely in their favor, that money could be gone and the SBA could have nothing to do with it. That all depends on your liquidity and that of the banks as well.
It sounds like the bank MAY still have a valid lien on your personal property. NEVER borrow anything from anyone to pay off a loan that involves 3 parties. IN addition to what you've paid, you could still lose your home if you own one.
I've had extensive experience with a screwed up bank and due to errors on the part of the bank and errors on the part of the SBA, I lost 7 figures and all my personal assets. I went from having an international technology company and a house on the water to just enough money to move my family and rent a two bedroom apartment. I learned a lot in the process and again, what you've posted doesn't sound right.
If you can post more specific details that makes your situation more clear, such as what the $100K paid, what the $12.5K paid, what they said to prompt you to pay these funds, I'd be more than happy to provide some constructive help.
Good luck
Hi DIDO59, I don't want to sound like I'm flaming here but I think it would be in your best interest for me to provide you with a very firm and direct answer. This is based on my experience with the SBA and SBA backed loans. I am not a banker nor an attorney so this isn't legal advice. It sounds like there's something very wrong or missing in what you've posted. In short you have paid 275% of the amount you borrowed. If you had that money available, why did you get an SBA loan that requires you to put all your personal assets on the line? Then in filing bankruptcy you either used an attorney or did it yourself. You've spent a lot of money to deal with this to the end of the story so I would think you used an attorney. If that's the case, they attorney should have been able to clearly tell you the EXACT status of the loan. In short, if you filed bankruptcy then you're likely on the upswing and everything should be much more clear. I would be surprised if the bank could call in the loan. They also have an agreement with the SBA and are required to abide by it. They also have to the OK of the SBA to compromise the terms of the loan at all. The first thing I would consider in the situation is stop paying anything but don't just sit on your hands. Second, locate your local SBA office and contact the representative there. You may get little help as I've found, the people in the local offices have little responsibility and oversight so they do little. Consider sending them a certified letter informing them of the exact details including your loan number, type of loan, your exact payment amounts and copies of the payment instruments (checks, etc.) and also visit the SBA website and get a name and address of a responsible party and copy them on everything.Basically, you want to be sure you copy the boss of the person in the local office so he/she'll get off their chair and do something. Then I would contact an attorney. Most any one of them will spend at least 15 minutes with you if they feel it's worth their time. Don't commit to them and don't say you won't commit. Get information so you can make an informed decision. Typically I would say you may be able to deal with this yourself, but if what you are saying is correct, you may be out a whole bunch of money. If your payments to the bank were outside of the agreement between the bank and the SBA and if their demands were written safely in their favor, that money could be gone and the SBA could have nothing to do with it. That all depends on your liquidity and that of the banks as well. It sounds like the bank MAY still have a valid lien on your personal property. NEVER borrow anything from anyone to pay off a loan that involves 3 parties. IN addition to what you've paid, you could still lose your home if you own one. I've had extensive experience with a screwed up bank and due to errors on the part of the bank and errors on the part of the SBA, I lost 7 figures and all my personal assets. I went from having an international technology company and a house on the water to just enough money to move my family and rent a two bedroom apartment. I learned a lot in the process and again, what you've posted doesn't sound right. If you can post more specific details that makes your situation more clear, such as what the $100K paid, what the $12.5K paid, what they said to prompt you to pay these funds, I'd be more than happy to provide some constructive help. Good luck
Sounds right to me, as the same thing happened with my SBA loans. After the 'police' showed up at my house in front of my kids to take me away for not paying $65,000 on demand (with a 790 credit score, mind you), then the demand for seizing property started. I filed bankruptcy, and thanks to my lawyer, got rid of the banks who say one thing to get your signature, then change their terms to whatever they want, when they want. It's in the fine print.
Hi DIDO59, I don't want to sound like I'm flaming here but I think it would be in your best interest for me to provide you with a very firm and direct answer. This is based on my experience with the SBA and SBA backed loans. I am not a banker nor an attorney so this isn't legal advice. It sounds like there's something very wrong or missing in what you've posted. In short you have paid 275% of the amount you borrowed. If you had that money available, why did you get an SBA loan that requires you to put all your personal assets on the line? Then in filing bankruptcy you either used an attorney or did it yourself. You've spent a lot of money to deal with this to the end of the story so I would think you used an attorney. If that's the case, they attorney should have been able to clearly tell you the EXACT status of the loan. In short, if you filed bankruptcy then you're likely on the upswing and everything should be much more clear. I would be surprised if the bank could call in the loan. They also have an agreement with the SBA and are required to abide by it. They also have to the OK of the SBA to compromise the terms of the loan at all. The first thing I would consider in the situation is stop paying anything but don't just sit on your hands. Second, locate your local SBA office and contact the representative there. You may get little help as I've found, the people in the local offices have little responsibility and oversight so they do little. Consider sending them a certified letter informing them of the exact details including your loan number, type of loan, your exact payment amounts and copies of the payment instruments (checks, etc.) and also visit the SBA website and get a name and address of a responsible party and copy them on everything.Basically, you want to be sure you copy the boss of the person in the local office so he/she'll get off their chair and do something. Then I would contact an attorney. Most any one of them will spend at least 15 minutes with you if they feel it's worth their time. Don't commit to them and don't say you won't commit. Get information so you can make an informed decision. Typically I would say you may be able to deal with this yourself, but if what you are saying is correct, you may be out a whole bunch of money. If your payments to the bank were outside of the agreement between the bank and the SBA and if their demands were written safely in their favor, that money could be gone and the SBA could have nothing to do with it. That all depends on your liquidity and that of the banks as well. It sounds like the bank MAY still have a valid lien on your personal property. NEVER borrow anything from anyone to pay off a loan that involves 3 parties. IN addition to what you've paid, you could still lose your home if you own one. I've had extensive experience with a screwed up bank and due to errors on the part of the bank and errors on the part of the SBA, I lost 7 figures and all my personal assets. I went from having an international technology company and a house on the water to just enough money to move my family and rent a two bedroom apartment. I learned a lot in the process and again, what you've posted doesn't sound right. If you can post more specific details that makes your situation more clear, such as what the $100K paid, what the $12.5K paid, what they said to prompt you to pay these funds, I'd be more than happy to provide some constructive help. Good luck
Sounds right to me, as the same thing happened with my SBA loans. After the 'police' showed up at my house in front of my kids to take me away for not paying $65,000 on demand (with a 790 credit score, mind you), then the demand for seizing property started. I filed bankruptcy, and thanks to my lawyer, got rid of the banks who say one thing to get your signature, then change their terms to whatever they want, when they want. It's in the fine print.
Sounds right to me, as the same thing happened with my SBA loans. After the 'police' showed up at my house in front of my kids to take me away for not paying $65,000 on demand (with a 790 credit score, mind you), then the demand for seizing property started. I filed bankruptcy, and thanks to my lawyer, got rid of the banks who say one thing to get your signature, then change their terms to whatever they want, when they want. It's in the fine print.
Everything should be outlined in the documents that you signed - it will show how and when they can call the loan as well as when default occurs and what options they have when it occurs.
I would find a very good lawyer!
Sounds right to me, as the same thing happened with my SBA loans. After the 'police' showed up at my house in front of my kids to take me away for not paying $65,000 on demand (with a 790 credit score, mind you), then the demand for seizing property started. I filed bankruptcy, and thanks to my lawyer, got rid of the banks who say one thing to get your signature, then change their terms to whatever they want, when they want. It's in the fine print.
Everything should be outlined in the documents that you signed - it will show how and when they can call the loan as well as when default occurs and what options they have when it occurs.
I would find a very good lawyer!
woodencrates | Creator | 1/18/2011 - 8:45 am
woodencrates | Creator | 3/22/2010 - 8:29 pm
HasBinShop | Window Shopper | 1/18/2011 - 8:45 am
HasBinShop | Window Shopper | 3/22/2010 - 8:29 pm
phanio | Contributor | 1/18/2011 - 8:45 am
phanio | Contributor | 3/22/2010 - 8:29 pm
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!