Posted by Bill Gatten on June 03, 1999 at 20:03:30:
Ooooky dokey…goes a little bit like this here…
Put the property in a PACTrust™; appoint a 3rd party Trustee (we know a good one, if you need them); add the buyer as a co-beneficiary; have the co-beneficiary lease the property from the trust; appoint a 3rd party collection agency to collect payments and make dispursements (we know a good one o’ them too). The buyer gets all the benefits of owning without a title transfer, and the property needn’t be sold until the trust terminates and the SBA loan is paid off. I was asked yesterday to handle one exactly like what you are describing. However… I spent an hour pouring (“poring”?) over the loan docs and couldn’t find a Due on Sale Clause (wierd).
Bill
SBA-DOS - Posted by Bert G
Posted by Bert G on June 03, 1999 at 17:20:23:
I’ve read the various articles and posts about Due On Sale clauses in regular loans, HUD gauranteed loans, etc. Basically that, yes they can call it due, but probably won’t because interest rates are lower now.
Has anybody run into the DOS when it comes to loans from the Small Business Administration? The SBA administers disaster releif loans. Its not like some other agencies where the loan is from a bank and the government gaurantees them. Here, the SBA is actually making the loan. They send the check, and the payments are mailed right to the SBA.(I’m mailing 3 payments a month.)
Most of the inhabitable homes in my town have SBA disaster loans on them, at about 3.85% to 4%. Thus, most sellers are unwilling to finance, fearing the wrath of the government. Reading the fine print on the 3 SBA mortgages blanketing my home and rental, it doesn’t say they MAY come payable, it says they SHALL become payable.
I really don’t want to get the gummint on my case. A local business school owner was prosecuted for buying the wrong stuff with her SBA loan, even though it had been fully repaid.
I just had 2 CFD offers rejected because the sellers had SBA loans and felt they had to cash out because of it. Any suggestions I could use in negotiationg with these sellers would be appreciated.
Bert G (Grand Forks, ND)