Another Offer in Compromise that took forever! but was worth the wait
In order to successfully navigate a workout you must be organized, responsive, cooperative, disciplined, and most importantly; patient.
Most offers in compromise will take only a few months to complete. The average process begins with a few weeks of data collection, organization and preparation. Once funds are raised, the offer is put in writing and presented to bank with the correct supporting documentation. Negotiations begin between us and the Banker and eventually the banker supports the offer and sends it to the SBA for final approval. This process takes a number of months (depending on how back-logged the SBA is) and we then receive final acceptance and conclusion to the debt problem.
However there are always a few scenarios that will test our client’s patience. For these unlucky few the process takes well over a year. The banker is either unwilling to support our offer or is just so overloaded with work that they do not have the time available to process offers in a timely manor. When offers are rejected at the bank level, negotiation and discussions, most frequently surrounding the appraisals presented, begin and we either decide to raise our offer if additional funds become available or decide to wait out the banker until he realizes that they cannot forcefully collect any higher than what we have presented.
In a recent case with clients, we had a very slow banker deny our first offer after several months negotiations due to a difference in appraisal of real estate. After 8 months of working with this bankers, our first offer was formally rejected. The moment of truth came and we were able to raise additional funds and increased our offer. The only problem standing in our way now was to get the banker to support our increased offer without another 8 month long process, knowing that after he accepts the offer that the SBA still has to approve it.
With enough determination and communication with the bank, we were able to get bank approval and have had the offer sent to the SBA for final approval within 2 months of increasing the offer. At this point my clients had been attempting to settle this debt for just under a year and the offer had just left the bank. Their patience was draining and they were very eager to move on from this problem, free their home, and move on with life. We told them to hold their position and their patience and we would succeed.
The offer is in the hands of the SBA, and will be approved. Our clients are a few weeks away from the freedom they are seeking. It was their organization, cooperation, discipline, and PATIENCE that got them there. A result that was well worth waiting for.
