Website design By BotEap.comIt makes little sense, since the SBA has a defined Offer in Compromise program; We initiate it frequently and resolve delinquent loans very effectively. There are procedures, guidelines, requirements, and a resolution process. Works. It is often difficult to navigate, cumbersome to use, but because we understand the process well and have a lot of practice with it, and we are very successful with it, we did it.

Website design By BotEap.comNot so with Katrina disaster loans or other disaster loans that are in default.

Website design By BotEap.comFor whatever reason, they haven’t received the memo. They don’t know about an Offer in Compromise process and act like they aren’t SBA-guaranteed loans. They cannot be resolved. We know we’ve tried repeatedly and got nowhere every time.

Website design By BotEap.comApparently, the SBA has determined in its own infinite wisdom that there is a significant difference between directly lending money from Congress to support disaster situations and loan guarantees made through traditional banks. For some reason, this difference is sufficient for an Offer in Compromise procedure to exist for guaranteed loan issues through banks and direct loan issues directly from the SBA.

Website design By BotEap.comWhy is there a difference, I don’t know. I can’t even understand the logic behind such demarcation, but there is.

Website design By BotEap.comA defaulted disaster loan goes directly to the United States Department of Justice, Treasury and is handled by an Assistant United States Attorney and prosecuted as if defaulting was a crime.

Website design By BotEap.comNow, in fact, we have carried the defense of such a situation throughout the Federal District Court system and we have litigated it before a Federal District Judge and we have achieved a great pardon, our typical pardon of 90% on a loan of $ 1.2 million dollars, however the sad part of this is the huge legal fee that borrowers had to pay for such justice. It took years and a small fortune for legal fees that could have been used to reduce debt, but instead they were used to prove that the borrowers were bankrupt and out of work and unable to pay a penny more. In fact, the payment was structured over several years.

Website design By BotEap.comImagine the scene, your home and business razed to the ground, your entire community gone, and the SBA is on site working from a mobile office, offering cash on the spot to rebuild. The reconstruction did not go well, the business or the market did not recover and the income has apparently disappeared forever, and then the second disaster occurs, the SBA has been collecting its recovery and, although the borrower never recovered from the disaster, he lost everything that I had. , the United States Treasury is going to collect no matter what.

Website design By BotEap.comDespite the facts and despite the reality that the SBA has a debt forgiveness plan, disaster loans are not included in this process. Let’s hit the borrowers again, the SBA says, we charge no matter what … and so they do … no matter what, and until I get to the US District Court, there are no exercises. available. We know. We are defending a handful and we are not winning. We are losing.