I received a letter that my loan was in default because I did not send payment by the 4th month and the total balance is due Aug 31. I sent the total amount due. Will I still be in default of the loan.(Tell Us More or Submit Now to Talk to a Professional)
Country relating to Question: United StatesState (if USA): LouisianaWhat have you tried so far?: I paid the total amount due for the four delinguent payments
Thank you for the post, I am happy to assist you by answering your questions.When did you send the amount due, was it late when you sent it?
I sent it today it was late. It was due Aug 1st. I received the letter in the mail August 18. It was dated August 15th. It was done electronically. I received a payment date confirmatiion of Aug 21st.
Thank you Gerald, because you did not pay when due, you are considered to be in default despite the late payment, the lender can accelerate the loan to demand the full outstanding balance. Please let me know if you have any follow up questions.
Is it negotiable?
Yes, but subject to the sole discretion of the lender, you do not have a lot of leverage here. If you can offer a sum to pay as security against future default, that may go a long way towards a cure and you not be required to pay the full balance now.
It is a large amount, 37,000 and I can not pay that in full. Will I lose my home and good credit rating? It is a SBA loan.
Are you opposed to filing bankruptcy?
Yes I am. The representative said in the letter that if I would like to discuss the matter to call her.
ok, while possible your credit could be negatively affected and you lose your home, it is unlikely. What is more likely is that you would be required to put money in escrow to cover a missed payment.
Negotiate, Draft, and Review many complex commercial agreements each year.
Thank you so much for your counsel.
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