Foreclosure in Tulsa County>Question Details

Wayne M. Wil…, Other/Just Looking in Tulsa County, OK

My house is collateral for SBA Business Loan. They filed 2nd Mortgag. I'm deliquent. If they foreclose

Asked by Wayne M. Wilson, Tulsa County, OK Thu Mar 12, 2009

doesn't the VA Mortgage go with the house? There is a power of Sale claus. SO they will do non-judicial proceedng. They need proceeds to apply to SBA Loan. THis is Homestead property. If power/Sale done and is Homestead state law prevents deficiency judgement. A lot of wording in SBA Mortgage should I have attorney see if they are trying to get around laws.

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My NC Homes Team’s answer
A second mortgage is just that, it's second in line tothe primary mortgage. That said, you should not fool around, I would advise you to immediately consult with an attorney and be proactive. You did sign loan documents and commit to making payments, and there are legal ramifications to the documents you' signed both with the SBA and with your first mortgage lender. The best thing you can do is to try and work something out that you and they can live with and a lawyer is going to be a critical part of any resolution that will be fair to you.
0 votes Thank Flag Link Sat Jun 23, 2012

You should definitely have your attorney review the loan documentation including the mortgage. Even if the bank/SBA does not have the ability to foreclose, it's important to remember that the lien will sit there indefinitely until you try to sell or refinance the home. My firm assists borrower to settle SBA debt and Liens on homes, so if you end up with a deficiency, I can help you settle the remaining balance.

Jason Milleisen
Distressed Loan Advisors
0 votes Thank Flag Link Sat Jun 23, 2012
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