SBA Loan Default – Don’t Wait Until It’s Too Late

December 18, 2009 by  Filed under: Loans 

Very often, we get inquiries from borrowers who are behind on their SBA guaranteed loans. We reach out to them, and are met with silence. As in “I’m a little concerned so I emailed you, but not so concerned that I’ll actually make the effort to get back to you.” A few weeks pass, and one day we get a frantic email or phone call: The bank wants to be PAID IN FULL in 2 weeks. HELP!!!!

That’s right, folks it’s a DEMAND LETTER. You woke the sleeping giant, and they smell blood. Is this the beginning of the end? Maybe. Can anything be done to stop it? Possibly.

The key to surviving a demand letter to act fast. This is NOT the time to run and hide. Becoming a ghost is the surest way to ensure that the bank will beginning unload every legal bullet its got…writs, complaints, judgments, foreclosures, replevins.

You would be surprised at how many small business owners crawl under a rock after things begin to go bad. It most certainly does not have to be that way. Banks today, more than ever, are willing to listen. Are they giving away freebies? No. But if you can make a smart, articulate, and succinct argument, your bank may just give you the breathing room you need. Sometimes all it takes is a simple call or letter.

If you are intimidated by your banker, then it’s important to find someone who can represent you. Workout consultants like Distressed Loan Advisors can talk to your banker, help formulate a plan, document the plan, and work with your bank to get that plan approved. Doing this sooner than later can prevent all the legal headaches that can come with ignoring the problem.

(Distressed Loan Advisors offers expert advice about SBA loan modifications and the Offer In Compromise process, and can be reached at http://www.JasonTees.com)

Article Source:

http://EzineArticles.com/?expert=Jason_Tees

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