I hear this ‘plan’ more often then I choose to admit. ‘I am just going to wait and see what happens…’
And this is a plan? It’s an act of personal financial suicide. It’s no plan, it’s a decision to allow others to control your destiny. It’s avoidance at its best. It is self destruction.
So why do you do this I ask? Never an answer other then wanting to wait and see what happens, It is as if you are watching a tv show and want to see the ending…only his is not a tv show, it is your life.
So you never have to wait and see what will happen, here is the script, exactly what will happen if you have an SBA guaranteed loan and you are in default.
After 90 days, could be allot sooner or allot later, depends upon the bank, but 90 days is the typical benchmark, the bank will photo the collateral, arrange for their appraisal and then commence foreclosure. They will not negotiate at all, and upon foreclosure they will liquidate by auction, irrespective of how little they may get and how backwards this may seem, it is the rule of the SBA and if they fail to ‘exhaust their legal remedies’, they may lose their SBA guaranty, a very valuable payoff. You can bet they will follow through and exhaust their legal remedies. Then the SBA will pursue you through the Department of Justice to collect on your guaranty. These Assistant US Attorneys who work for the Dept. of Justice are bad boys…and bad girls. They are very hard to get to compromise, although we handle this issue repeatedly and successfully, it is a street fight.
Now you know exactly what to expect.
Non SBA guaranteed loans, traditional secured bank loans, follow a similar path but may be easier to deal with and may offer more flexibility, but in the end the results will be the same. Some banks are tougher some are easier but they all do the same thing…foreclose and liquidate and then pursue personal guaranties.
What to do? Be pro-active, get in front of the train and stop it.
There are few paths to take.
If SBA guaranteed, you have three options:
1.Pay, of course you can’t so this fails.
2. File bankruptcy, this fails as you lose your business, the loan stays attached to your home or you may even lose your home…not a good result.
3. Best, call us we have a plan that does work, keeping your business alive and stripping the debt of it as well as reducing the personal guaranty liability to pennies on the dollar. This works.
If a traditional secured bank loan, you have one other option, you can enter into a workout plan that modifies your loan, this may provide some relief but the not enough to save the day.
The only real answer is debt reduction, and that is what our strategy provides with far less loss.
There it is, the entire script, with endings to choose from, You do not have to wait and see, now you know.
Call us we can help.
Call 413-584-2581 Norm will arrange a no obligation teleconference for us to discuss your issues and provide you with a plan.
