Daily Archives: Agosto 1, 2024

Can You Remove a Subordinate SBA Lien or Mortgage On Your Home?

Can You Remove a Subordinate SBA Lien or Mortgage On Your Home?

The SBA is willing to release a mortgage/lien so that the owner can sell or refinance under the right circumstances. Here’s what you need to know.

This is a huge issue which we frequently confront on many different fronts. Let’s assume an SBA loan was not used to purchase the property. Many may believe that the property cannot be sold or financed because the subordinate lien cannot be satisfied. There is the additional possibility that typically the property is not worth the first and second mortgages, if there is one, and that the attached SBA lien is entirely underwater. But, this issue of the lien remains a huge problem as there will never be any value unless the subordinate SBA lien is removed.

As a borrower/owner of the property who wants to sell or refinance, or someday enjoy the potential equity building within the financing, if only we could get rid of the SBA lien. What can we do?

There is a strategy for this. The SBA will be willing to release the mortgage/lien so that the owner can be allowed to sell or refinance the property under the proper circumstances. However, cooperation is requiredmitment on the borrower’s behalf is also necessary. The borrower must not receive any of the sales or refinance consideration. Although all proceeds must be distributed in order of priority, it is possible.

Even if you have filed for a bankruptcy, while the SBA debt may no longer be an obligation which needs to be paid by the bankrupt borrower, the lien remains attached to the property pending sale or refinancing

In most cases, the best path to removal is making an Offer In Compromise which resolves the SBA subordinate lien for pennies on the dollar, and once that is settled the lien will be released, and the offer value of the property returned to the owner.

So even a bankruptcy does not remove the lien. There is a method can i use a prepaid debit card to pay student loans of removal which sometimes works, by making a motion to the court to strip the lien off because it carries no inherent value, there is no equity and the subordinate lien is unsecured. (more…)

Continue ReadingCan You Remove a Subordinate SBA Lien or Mortgage On Your Home?

Exercise #: Visualize What The Company Will Look Like In Two Years

Exercise #: Visualize What The Company Will Look Like In Two Years

“Another one is a way to handle the stress of when things boil over, and problems are popping up. This was happening to me at Google all the time and probably less so now at Upstart, but when things pile up and your coping skills are almost at their wit’s end, I have this mental model of a reset button,” says Girouard.

“And it’s literally just this red button in my https://speedycashloan.net/loans/loans-for-postal-workers/ head, and I press reset. I tell myself, ‘I’m starting over. No problem is unsolvable. And we’re not building nuclear plants, so nobody’s going to die. I’m going to think about these problems one by one and realize that none of them are going to kill us, and each of them are solvable. A mental reset button just clears everything, and that’s one trick that I’ve strangely relied on for many, many years.”

What Could Upstart Do Better

Upstart does have some flaws to consider. One is that because it has an unusual process for determining creditworthiness, those with strong credit might get denied. If you have great credit but little education and work history, Upstart may not approve your application. (more…)

Continue ReadingExercise #: Visualize What The Company Will Look Like In Two Years

Pay out of pocket: It’s not ideal, but you could also pay the lender the difference in cash at closing

Pay out of pocket: It’s not ideal, but you could also pay the lender the difference in cash at closing

This is only feasible if you have the extra cash available and you can’t sell later when the market is better.

Request a short sale: If you need to move and owe more than your home is worth, you might consider a short sale. A short sale is when the lender agrees to reduce the balance you owe on the home to help you sell. Lenders are more likely to allow a short sale if they fear you’ll foreclose on the home, so you’ll have to prove hardship to get it approved.

Short sales are usually priced below market value to ensure a quick sale, and your lender may require an all-cash offer so they can get out of the investment as quickly as possible. In some instances, lenders will require a promissory note, which means speedycashloan.net phone a loan you agree to keep making at least partial payments against the debt after the sale has closed. (more…)

Continue ReadingPay out of pocket: It’s not ideal, but you could also pay the lender the difference in cash at closing