How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard - Bizlaw Your Own Question
Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10629
Experience:  30 years of corporate, litigation and international law
Type Your Business Law Question Here...
Richard - Bizlaw is online now
A new question is answered every 9 seconds

Re An SBA loan and smaller business loan. After nearly a decade

This answer was rated:

Re: An SBA loan and smaller business loan. After nearly a decade we realized we could not keep the store running and the banker told us we could not sell the store, it "belonged" to the bank. Of course we now know this was a lie. If we had been able to sell the store it would have paid off the entire loan and we did have a legitimate buyer. The banker insisted on an auction and hired the auctioneer. We had over $135,000 of equipment [ appraised ], etc. He refused to set minimum bid prices and everything sold for $4,000 in early 2008. Yet he would not allow us to sell items such as freezers for $6,000 and make the checks payable to the bank, which the SBA indicates he should have done. Now 3 1/2 years after the closing of the store he is trying to foreclose on the house. We are current on the first mortgage and the SBA was second, the bank third [ a lein ]. Here is our question: If a person who is behind on their home mortgage can hand the keys over to the bank and walk away and consider the debt paid, is handing over the keys to the store essentially not the same thing? Had they handled the auction properly the debt would be paid off; if they had allowed the sale of the store and not lied to us the debt would be paid off. We gave them a $135,000 turn key business and they mishandled it and they then allowed everything that remained to be confiscated by the landlord as abandoned property. And now to add insult to injury the bank is claiming there never was an auction and have accused us of grand theft! Fortunately we have proof of the auction, proof they hired the auctioneer, and a copy of the canceled check made out to the bank by the auctioneer -- all faxed to us in 2008 on the banks own letterhead and fax ID at the top of every page --[ and we have been able to discredit all their other lies as well with proper documentation ] and are essentially off the hook on those points but the house is still in danger. They refuse to negotiate with our guys until these "issues are resolved" [ meaning these lies they created such as the auction, etc.]. We just now got those papers in to the court. Question 2: How do we file for a dismissal of this foreclosure? Or can we? We have been slandered. Cannot afford an attorney. We need to save our home. We have no where to go. Any advice is appreciated.

bizlaw :

If you had a bona fide purchaser, you can argue that the bank improperly interferred with the sale and forced you to a situation that resulted in the assets not bringing their true value. As a consequence, your damages due to the bank's interference equal the unpad balance of the loan. There is no such thing as turning the keys over to the bank and being off the debt. That only happens if the bank agrees to relieve you of the debt in exchange for the property. Your approach needs to be the bank breached its obligation to you by giving false statements as to their power on which you relied to your detriment.

If this answer is responsive to your question, please accept it. That is how we are compensated. It would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.


Thank you for your excellent answer. Question please: If a dismissal would be granted, would it merely end the foreclosure or would it eradicate the entire debt?

Richard - Bizlaw and other Business Law Specialists are ready to help you