Finding a Back Door

There are times where bankers are just too emotionally involved to allow the normal workout to proceed.  In these times we need a new plan.

I currently have two workouts that were in a holding pattern waiting for the bank.  The bank had denied the initial offer as “too low” which is not unusual.  What is unusual, is the fact that the bank refused to give me details.

I asked to be provided with where, in my client’s financials, the bank saw the money he must have to increase his offer and was met with a wall.  The bank has a right to not endorse the offer, but they have no right to not tell you why.  There has to be communication to figure out what they have an issue with so you can fix the issue and proceed.

After meeting this wall to the point where the files were to be sent to the Department of Justice for collections, I decided it had been long enough.  I was done playing the bank’s game.

The benefit of doing many Offers in Compromise through the years is that our office has a lot of contact information at the SBA.  I called one of these contacts and then sent her an email and laid out my case.  I let her know I am more than happy to increase the offer if she could tell me where the bank saw money I could have the client gather for them.  The SBA loan officer did not simply review the Offer as I had hoped, but she did provide me with a set of emails for the various SBA offices that the bank uses to submit their own offer packages.

This will force the SBA to contact the bank on my client’s behalf and ask why it was not endorsed and give my client and therefore me the letter stating the bank’s problems and more importantly, the ammunition I need to complete the Offers.  Sometimes if they bar the front door you need to find a window or another door to make your way in.