Do not take any advice or direction from the bank with an SBA guaranteed loan or from their attorneys.

I am writing about this subject again for a good reason. I continue to get e-mails and calls daily from people from all over the country who are telling me stories about the difficulties they have in attempting to negotiate settlements with the SBA, IRS or their banks.

I hear more bad stories about banks misrepresenting the SBA workout standards. Lawyers using the tried and true intimidation tactics they are so fond of. The IRS likewise using intimidation and offering bad inaccurate advice to get their way. It is very depressing to hear how people are being taken advantage of despite their attempts to do what they believe is the right thing acknowledging their debt and their commitment and wanting to pay it off as best as they can.

Why do borrowers in default actually believe they would get the straight scoop from their opposition, their lender or their lenders attorney’s.

Really, it is a bit naive to think that you will get true, reliable answers to your questions and reasonable responses about aspects of debt reduction and forgiveness that are not in the lenders best interest. This is the real world Bunky, do not expect your opposition to give you the best advice they can against their own best interests, it is not going to happen. Do not expect it and do not even ask. Its silly and counterproductive, yet this appears to be the way people figure out what to do  to work  their debt issues out.

If you are naive enough to be relying on your opposition for advice and guidance then perhaps you deserve to get the beating you will most assuredly get. As in these situations, unfortunately people lie, misrepresent, and intimidate, in short do anything they can to gain an advantage and get the borrower to pay back as much as possible. You all need to understand this. Do not take advice from your banker when in default.

Despite your willingness to come to the table in a defaulting situation with integrity, honesty and sincerity, and a desire to work things out amicably and appropriately, your opposition is coming to the same table, with one purpose, to extract the most they can and to prevent their losses, and this does not include giving you good, honest or even accurate or reliable advice or information. Their attitude is simple, you borrowed the money now pay it back and do what ever it takes to accomplish this feat.

I can only tell you that I receive calls and emails daily telling me the silliest stories imaginable, told to borrowers in default by their creditors or lenders or lawyers representing them. Sillier yet is the willingness people have in believing they are getting the truth and their willingness to believe it and even follow it.

It ain’t so.

Worse yet are the hordes of people who do rely on their own ‘expert’ counsel, their lawyers, or accountants, who are general practitioners and have little experience with SBA or IRS workouts or any workout, and thus have no idea what works and what doesn’t work and tend to go along with the bad or incorrect advice or information handed down to them by the collecting parties. They mean well but lack specific SBA or IRS or Bank workout experience on point.

I have said it before and say it again, get expert advice, from people who practice in the areas of your concern.

You would not go to a general family Doctor for advice on cancer or brain surgery.

Why would you go to a general practitioner or the opposing side for advice and information about issues that threaten your financial lives?

You no longer have the excuse that you do not know who to go to, as I am willing to provide you with accurate and reliable information, you need only ask.

Call Norm in my office, he will set you up with a no obligation teleconference with me as soon as possible. 413-584-2581.