There Comes the point in time when you are in dire need of a fast loan. The loan comes in handy at a time when a medical emergency faces you or when you want to pay your landlord rent to avoid forceful eviction. All in all, the above mentioned is a need that cannot get quenched by any other thing other than money. After doing some window shopping here and there, you settle for the SBA loan that has highly accommodating interest rates.
In as much as you feel proud of accessing a given loan, you are always in a constant fear of repaying the lender in the set time. Time elapses and you find yourself to have defaulted. When you default on an SBA loan default, you are likely to face the challenges mentioned below. Because SBA loans get issued by the banks on behalf of the Federal Government; your default case becomes a priority that requires immediate pursuing.
When you default, the lender which is usually a bank directly contacts you via direct mail or through a 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. Know more facts about laws at http://dictionary.reference.com/browse/lawyer.
When you fail to accept the SBA loan agreement, the local bank makes efforts to get hold to some of your property. When you default, you are not only compelled to repay the loan in full but also settle any other additional expenses that might have come about.
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. Before the Offer in Compromise can take effect, the IRS determines your financial worth to ascertain as to whether or not you fit the bill. Through IRS, you can repay your loan in installments. If your proposal happens to get declined by SBA; you have no other option other than to seek assistance from the United States Treasury Department.
If you decide not to repay a loan, be willing to lose a lot financially. Hence, with SBA loans, there is no escape. Visit sba-attorneys.com if you have questions.