SBA Will Sue You in Federal District Court, Liquidate Your House and Garnish Your Wages If You Do Not Work This Debt Out

I have been asked many times what will the SBA actually do? Will they liquidate our home, people ask in disbelief? Will they really garnish my wages? Many do not believe these procedures will actually occur, but they will.

If either ignored, or a reasonable deal is not entered into, they will resort to the above procedures.

As for your homes, it is true that we frequently see large subordinate loans guaranteed by the SBA result in either voluntary attachments, subordinate mortgages, or the Bank/SBA gets a judgment lien and applies it to your home. Either way they are locked onto your home with all the debt you own. They will wait you out, someday you will want to sell or refinance, and then they will be there for their payday.

If there happens to be at least 20% of value in equity in your home, they will consider foreclosure as there may be enough in it to yield a return on the cost of foreclosure and liquidation.

Any way it goes there will be no return on your home... ever.

We spend an enormous amount of time, energy and effort fighting the battles to save our clients' businesses, their homes and their lives, and an honorable battle it is.

Our belief and experience, based on enormous contact with many small business owners, is that none of our clients would like anything better than to be able to pay their bills and loans, work hard and provide for their families and support the jobs they provide.

So the conclusion is, the debt must be worked out. There are no other options that protect your financial condition, or your home. You may get to live in it for a long time but why pay the mortgage on an asset you will never experience any equity in?

Garnishment happens all the time. Foreclosure and liquidation, yes, and if not the lien will always be there.