A couple years ago, I got a SBA backed loan to expand my business. The lender required me to give a lien position on my home in addition to the personal guarantee. The SBA guarantee was 85% and the remaining balance on the note was right at 86% of the original balance when I defaulted.
In late 2008, business literally dried up and cash flow basically ceased with gross revenues dropping 95% for three months. We had already laid off folks, but the cash ran out after two months. I contacted my banker in the first month. They let the first payment miss, but the second they said could not be missed. I could not make the second payment. The banker had a truck at the store two days later and confiscated all the assets.
It's been six months now since the bank took our assets and forced me to closed our doors. I have gotten a Notice Of Default from the bank but no other legal communications.
I'm wondering what is going to happen with that SBA guarantee and the mortgage position they took on my home along with the personal guarantee.
There is no equity in the home and I don't the means to repay the business note along with my 1st. home mortgage. I really want to get the business banker's lien off my home.
Anyone have info on how they dealt with this? Working with the lender seems the first action since they originated the loan. But, what about the SBA? Since they backed the note, I know the lender will go to them for the 85% that the they backed. Will the SBA come after me?
What is the name of your state (only U.S. law)? Wisconsin
In late 2008, business literally dried up and cash flow basically ceased with gross revenues dropping 95% for three months. We had already laid off folks, but the cash ran out after two months. I contacted my banker in the first month. They let the first payment miss, but the second they said could not be missed. I could not make the second payment. The banker had a truck at the store two days later and confiscated all the assets.
It's been six months now since the bank took our assets and forced me to closed our doors. I have gotten a Notice Of Default from the bank but no other legal communications.
I'm wondering what is going to happen with that SBA guarantee and the mortgage position they took on my home along with the personal guarantee.
There is no equity in the home and I don't the means to repay the business note along with my 1st. home mortgage. I really want to get the business banker's lien off my home.
Anyone have info on how they dealt with this? Working with the lender seems the first action since they originated the loan. But, what about the SBA? Since they backed the note, I know the lender will go to them for the 85% that the they backed. Will the SBA come after me?
What is the name of your state (only U.S. law)? Wisconsin