Can you strip off a subordinate SBA lien or mortgage to sell the property

Assuming the SBA loan was not used to purchase the property, but is a subordinate loan attached to the property by an agreed to mortgage or as an attachment because of a breach of the loan payments, it appears to many that one cannot sell the property because the subordinate lien cannot be satisfied. The property is not worth the first or second mortgage and the attached SBA note is completely underwater, upside down.

What can the borrower/owner of the property do, especially if he wants o sell or refi…seems blocked.

But it isn’t.

There is a process available and a strategy that allows the owner to sell or refinance the property with the SBA being willing to release the mortgage/lien so this transaction can occur.

It requires a little cooperation, and a commitment that the borrower receives none of the sale or refinance consideration. All proceeds must be distributed in he order of priority, but it can be done.

Call if you need help…413-584-2581 Norm will arrange a tele-conference

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