Disaster Loan Workout Breakthrough! We Are Getting Better Results!

We have discussed in the past the near impossibility of effectively working out disaster loans issued directly by the SBA as the SBA has made the decision that these loans are not to be discounted. Then, we determined that they would discount them but only to 50%. This is a step in the right direction but it’s still too high for anyone to effectively pay them off. Good, but not good enough.

Recently, a client of ours working with our Debt Relief Strategies department (our non-profit division supporting borrowers in default who cannot afford our fees and whose home is under attack from disaster loan personal guaranties or any loan in default that is challenging their home) had an 80% discount result. Now we are beginning to talk business. This is a breakthrough. It is difficult to determine if this was a one-in-a-million result or the result of a policy change by the SBA, but the fact remains that we see the results and it is beginning to become workable.

Can we do it again? Can we do better? It’s hard to say. Only time and effort will tell, but this result suggests we can do it again and get better results as we develop workable strategies. We are heartened by this result as we saved a person worthy of being saved and that is our mission. We look forward to doing it again.