SBA loans assumed, assignor dies,bank don't take payments, forclosure starts -remedie

[snelson]

What is the name of your state? Minnesota

My mom and I purchased a supper club in June of 2005. We assumed the SBA loans from the seller, with him as a guantor too. We did a standard corporate contract for deed with seller for the balance of the selling price. My mom and I did do a corporation with the business. December the Seller died, the bank refused payment from us and has served forcloser notice and a sheriff sale in March, the only way to stop this is by obtaining a mortgage and pay the bank off. The bank said because one of the guantor's died, they can do this. don't we have any right to protect our investment? Can we even look at bankrupty to try and keep the business? Any thoughts would be great.

Yes, getting a new loan or buying it at the sheriff's sale would be an option, however, the business has not been all that good. So, banks have just turned away from it. We have alot invested and I would like to get the investment money back out. We have it listed with a realator for sale, but no buyers yet. The property is Leased right now with an option to buy.

Is there any other way to avoid the bank getting the property back?