Corporate Law SBA Loan

[Scarlett2878]

I inherited house from a friend after his death. I researched the deed, and there is a Small Business Administration Deed to Secure Debt on the house. It is listed under his name A Single Person and company name.

I declined acceptance of the business because I did not know anything about his business. So the accountants are closing it down and eliminating the Corporation listed with the State.

I would like to have the property.

If I accept the property am I liable for the SBA loan?

Is there any way that the estate can get out of the SBA loan? I was not related to him and he had no living relatives. I am a senior citizen myself and my health is not up to handling a lot of problems.

Does anyone have any suggestions?

Thanks.

 

[army judge]

The home, more than likely has an SBA lien.
If you inherit the home, you inherit the lien.
That, in and of itself, doesn't mean you inherit the debt.
Why?
Debt can't be inherited, if you weren't a signatory to the credit or proceeds of a loan.
Simply put, I wouldn't worry about it, if it is a lien.
In most jurisdictions, a homestead (a home in which you reside), can't be foreclosed against, to force a sale which might be able to be applied against said debt.
However, I suggest you spend a couple hundred dollars and do a proper title search and consult with a real estate lawyer for a precise answer to your query.


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[disagreeable]

When the property is probated, you must satisfy the lien or the property must be sold to satisfy the lien.

 

[Scarlett2878]

Thanks for letting me know. I don't know what they do when the house is under water--owing more than what it is worth, and the interest rate is high.

I need to give it back to the Bank and move on, I guess. I was hoping not to do that, but there is no choice. I will not make any more payments on the house, and I will save the money to move.

 

[disagreeable]

Thanks for letting me know. I don't know what they do when the house is under water--owing more than what it is worth, and the interest rate is high.

I need to give it back to the Bank and move on, I guess. I was hoping not to do that, but there is no choice. I will not make any more payments on the house, and I will save the money to move.

This lender may not be doing it, however, when they go to legally evict you, you can attempt to negotiate a rental agreement or moving incentive.