Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

WSFS Work-outs?

Recommended Posts

Does anyone have experience with WSFS work-outs? A client has a large ($425k) business loan with them. The business failed. Their home is collateral (hence, not a strong bargaining position!). Trying to help them with this. 

Share this post


Link to post
Share on other sites

Friday post with a Sunday appearance on the site and NO follow up...if you could see me, this would be my shocked face.

Share this post


Link to post
Share on other sites

Hi, sorry I'm the OP and wasn't receiving notifications that people had answered me here. Apologies! This is in PA. I'm a financial counselor. I've been researching it. There's a lot to it, related to Offers in Compromise, etc.  There's collateral on the loan, real estate, so they won't accept any offer unless it's in the ballpark enough for them to not want to deal with foreclosure, etc. Also SBA loan, which complicates things even more if it gets turned over as a loss by WSFS (so they get their 75%). Govt has all kinds of powers to get their money.

Share this post


Link to post
Share on other sites

SBA loan guaranteed by a primary residence? what can go wrong there? it's one thing to PG a business loan and have to file personal BK when the business fails, but risking your house is just silly.

Share this post


Link to post
Share on other sites
3 hours ago, MCGUser said:

Hi, sorry I'm the OP and wasn't receiving notifications that people had answered me here. Apologies! This is in PA. I'm a financial counselor. I've been researching it. There's a lot to it, related to Offers in Compromise, etc.  There's collateral on the loan, real estate, so they won't accept any offer unless it's in the ballpark enough for them to not want to deal with foreclosure, etc. Also SBA loan, which complicates things even more if it gets turned over as a loss by WSFS (so they get their 75%). Govt has all kinds of powers to get their money.

if they want to keep the house, they need to find the cash. what assets did the "business" have? can they be liquidated? or was this more of a hobby that someone got a gov't subsidized loan for?

Share this post


Link to post
Share on other sites

It was a franchise gone wrong. They made some bad decisions, but that's water under the bridge. We're currently negotiating for interest-only to try to get them to level ground and net zero monthly cash low, then working any and all options to increase cash on hand (including selling the house and renting) in order to see if we can save some at least in a ballpark offer-in-compromise. 

 

Thanks for all the help here!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Member Statistics

    • Total Members
      179,029
    • Most Online
      2,046

    Newest Member
    Smoothblak
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines