There Comes the point in time when you are in dire need of a fast loan. With no other source of emergency income, a quick loan proves to be the only option you have to fetch money for medical purposes or to settle your rent arrears. Due to the financial thirst, you have no other choice other than to request for a loan from a lender. With The SBA loan, you can have access to financial assistance that is not only reliable but also customer friendly.
Although spending money obtained from a loan is always sweet and fulfilling, there is always a disturbing thought that lingers at the back of your mind, that of repaying the loan in due time. Time elapses and you find yourself to have defaulted. Below is an extract of what will happen to you if you default on the SBA loan. Because SBA loans get issued by the banks on behalf of the Federal Government; your default case becomes a priority that requires immediate pursuing.
The first step that the bank takes is to directly contact you the borrower either through direct mail or a quick phone call. If you fail to respond to either form of communication, the bank then moves to collect their loan through the provisions made under the SBA loan agreement. In such an agreement, the law compels you as the borrower to sell any item you put as collateral, to raise enough funds to repay the loan.
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When you fail to accept the SBA loan agreement, the local bank makes efforts to get hold to some of your property. As an SBA loan defaulter, you will be required to pay the loan arrears in full, the interest, as well as miscellaneous expenses.
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The IRS comes to the assistance of the bank when you fail to meet any of the above demands. Usually, you get an Offer in Compromise with the lender and in the presence of an advocate to come with an -pay-after plan. But prior to such an agreement, IRS assesses all your assets and tax information and determines whether or not you fit the bill. Based on the type of arrangement, the IRS pays the lender on your behalf. However, if SBA rejects the offer, you are left with no other option than to send the United States Treasury Department your file, to give them the opportunity of collecting funds from you and on behalf of the SBA lender.
When you default a loan knowingly or unknowingly, always be ready to face the consequences. Before seeking an SBA loan, always take the time to do some background research and assessment and evaluate yourself to ascertain whether or not your financial sources will enable you to repay the loan in real time.