House equity issues
Among the first concerns we ask a prospective customer is, ” Did you pledge your house as collateral?” Some states, like Texas, prohibit people from pledging their property as security.
Not all the states are such as this. You enough equity to cover the loan balance, you may be out of luck if you pledge your home as collateral and. The SBA won’t be interested in settling if the equity in the home (after applying a discount) is sufficient to cover the loan balance.
We don’t take the market value minus existing loan balances when we calculate how much equity is in a home. We are going to simply just just take a price reduction away from market value since we must assume in a loan provider would take into account expenses such as for example lawyer charges, realtor charges, etc.
Complete forgiveness for SBA 7(a) loans does not occur
If you are a debtor having an SBA 7(a) loan and also you look for SBA loan forgiveness, you aren’t likely to find such a thing helpful. Why? Because SBA loan forgiveness was lumped in aided by the Paycheck Protection Program.
Until you have PPP loan, you shouldn’t expect 100% forgiveness. Continue reading