Recent Feedback
I am 50% owner of LLC, my partner and I have owned raw land for the past 5 years and have carried an interest only loan. Recently the bank has called the loan and asked for payment in full or to get loan refinanced with another lender which in the time frame they gave us was unrealistic. They are now going to auction our property August 19th. If they do sell and the amount is not suffiicient to satisfy the loan, what then would the bank possibly do?
Optional Information: State/Country of Question: Missouri Already Tried: Have tried to refinance, yet not successful. Am willing to sell property for balance of loan, approx $160K, recent appraisal came in at $325K.
Hi there. If the property is owned by the LLC, the LLC is the borrower, and the members of the LLC did not personally guarantee the loan, then the bank's only recourse is to foreclose on the land, and seek any deficiency against the assets of the LLC. If the LLC has no assets other than the land...that is all the bank gets. Being that the LLC is a limited liability entity, your personal assets are not at risk unless you personally guaranteed the loan.
I hope this has given you the guidance you were seeking. I wish you the best of luck!
If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN "ACCEPT" button NOW, so that I receive credit for my work; otherwise, though you've made a deposit, I do not receive credit.
If you need additional clarification on this question after clicking ACCEPT, please don't hesitate to click "Reply" and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.
The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Experience: Attorney/Developer
Thanks for the answer, we did take the loan in the LLC, yet how can I tell if I personally guaranteed the loan? I have copy of loan paperwork.
Glad to help..If you personally guaranteed the note, there would be a separate guaranty agreement as part of the loan documents. Or, there could be a separate provision in the loan documents -- but botXXXXX XXXXXne if you can't find these provisions and didn't sign these documents in anything other than in your capacity as members of the LLC, then you did not personally guarantee them. Good luck to you!