Legal Question in Business Law in New York

sba default loan

i have defaulted on my sba loan. the loan amount was origninally $150,000 which i knocked it down to $147,000. commerce bank has a lien on my house. i still have 28 years out of my 30 year mortgage to pay off the bank-option one. I know that the bank was going to try to sell my business equipment or assets. will i lose my house? even though i offically owe the bank who has my mortgage? is there any way i can get out of this trouble? i am located on long island. thank you.


Asked on 2/20/07, 5:34 pm

1 Answer from Attorneys
William Pinzler william M. Pinzler

Re: sba default loan

First and foremost, you need a lawyer to look at the home mortgage documents and the SBA loan documents. Second, as a general proposition, the first lien filed has a priority position. So if the home mortgage lien was filed before the SBA loan lien, the home mortgage takes priority and your home cannot be foreclosd upon by SBA unless it pays off the home mortgage as part of the foreclosure. But, someone must look at all these papers and review what is filed to determine whether the general proposition holds in your case.

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Answered on 2/21/07, 9:47 am


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