subject: How can I stop my SBA Lender from Foreclosing on my home? [print this page] 3) Borrower's Question: Why can't I try to settle for less than the value of my house? In this case, the borrower could not understand why his SBA lender would not accept a settlement offer of $50,000, despite the fact that his home was worth $250,000. Again, the borrower tried to reason that with the housing market being so bad, the lender should take $50,000. Under no circumstances is your SBA lender going to settle for less than the value of the collateral. Why take $50,000 when they can get $250,000 (or $250,000 less the costs of foreclosure)? Also, with an SBA loan, the lender is held accountable for their actions by the SBA. This means that if the bank settled for $50,000, they'd end up getting a bill from the SBA for about $200,000. No lender wants to ever see such a bill arrive in the mail. Bottom Line: With the SBA looking over the lenders shoulder, the lender will not settle for less than the net value of their collateral.
How can I stop my SBA Lender from Foreclosing on my home?
