sba loan

[oldman]

i know sba loans are govt insured- how is it that if $200000 is borrowed default occurs- all collaterroll (house- retirement funds) are sold and applied to loan i thought that was the end 5 years later loan has been sold to secondary collecter amount is within 20% of original loan- without the collecters adding on interest ect. ect. i thought the sba paid off the loan .how can they sue for more or less original amt ? i could see if say sba only paid off say 80% being liable for 40000 - but the original lender gets paid off then sells the loan ten now i am supposed to pay another $200000 any one with with info please reply thanks in advance oldman

[petrified]

Oldman,

I don't have any answers for you other than you need to see an attorney asap! Sounds like you should have contemplated protecting your assets some time ago since you appear to have lost everything.

Go see several attorneys for free consultations.

[lrprn]

Welcome to BK Forum, oldman - glad you found us!

i know sba loans are govt insured- how is it that if $200000 is borrowed default occurs- all collaterroll (house- retirement funds) are sold and applied to loan i thought that was the end 5 years later loan has been sold to secondary collecter amount is within 20% of original loan- without the collecters adding on interest ect. ect. i thought the sba paid off the loan .how can they sue for more or less original amt ? i could see if say sba only paid off say 80% being liable for 40000 - but the original lender gets paid off then sells the loan ten now i am supposed to pay another $200000 any one with with info please reply thanks in advance oldman

A few questions first.... Was your small business a S corp? Did you incorporate it? Did you walk away from the business and allow it to foreclose or did you file personal bankruptcy listing this loan on your creditor list? If you did file bankruptcy, did you file with a lawyer or on your own (pro se)? Which bankruptcy chapter did you file - 7 or 13? And which state did you file in?

My guess is that the reason the loan now equals what you borrowed in the first place is that either the original loaner or collector has continued to add on late fees and penalties for non-payment over the last five years. That can add up very fast.

We're very glad you're here....however, in the future, it would be really helpful if you would use capital letters and punctuation in your posts. It was very difficult to read your post as one single sentence without periods. Thanks for considering - again, welcome!