Legal Question in Credit and Debt Law in Texas

I own a business, sub S Corp. Additionally, I own a few properties... Two business properties and two residential properties. One of them is on a small ranch/farm. I had long done business with Wells Fargo Bank and they had mortgage notes on three of the four properties. Two years ago I began to fall into difficult financial times. I proactively called my Wells Fargo banker and requested to sit down and find a way to make arrangements that would be mutually beneficial. I had a long history with them and had excellent credit at the time, 740-750 credit score. They immediately transferred me to a collection specialist, who became my banker. My first conversation with him was his ordering me to pay all my notes off in 90 days. I complained and complained to no avail. I continued to pay on time for about a year or more, never being late. But, I had to liquidate assets in order to do this. I finally got to the point that I had no liquid assets and had to stop paying on one of the properties...a business property. I offered to give a quit claim on the property but Wells Fargo insisted on forclosure. It appears that the forclosure will take place in early January. One of my concerns is if Wells Fargo sells the property for less than I owe, can they come after me and file leins or other legal insturments against me for the balance? If they can't, I would love to know. If they can, how can I protect myself?


Asked on 12/18/09, 7:03 am

1 Answer from Attorneys
Alex Davis A.L. Davis Group, PC

Yes, they can still come after you personally. They would have file suit for the difference then they could attach it to any other property you might have. Your only option that I am aware of is to file for bankruptcy on the business that would protect you from them if you are a personal gaurantor on the note for the property. If the property was bought through your corporation and you did not have to personally gaurantee the loan for the property you might be okay, but I would need more information in order to let you know for sure. I would suggest seeking the advice of an attorney ASAP, as once the foreclosure takes place your options are severly limited.

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Answered on 12/28/09, 11:16 am


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