In 2012 First Citizens Bank foreclosed on an SBA construction loan that was taken out in 2005 to build an RV Park in Yreka, Ca. witch we put up free and clear property as security. As usual we did a personal guarantee on the loan. During the foreclosure period we sold the property for $300,000 more than the banks appraisal to get the bank more monies on the loan witch the bank accepted.
Can the bank force us to give up our short sale rights in Calif. since we had to sign our lives away to get the bank to accept the short sale.
Within 30 days after the sale of the property we did a Offer in Compromise to the bank with the loan officers help in the reconciliation dept. Their response 8 months later was we only accept money. Our offer was prime commercial property as security with a sale when the economy turned around. You know that story. This is the first time we have heard from the bank in over a year.
The case was filed with the court on 4/14/14 and we were served a copy on 6/12/14 today and have 30 days to respond. Any help would be appreciated. Thanks, Roger
Answer
You look at your bank relations with a business person's perspective, and see the value and logic in the settlement offer you made. Banks look at deals and proposals much less entrepreneurially. They typically want hard cash rather than a position in a good deal. Also, evidently, they think a lawsuit is a good way to get hard cash, whatever the cost in fees and hard feelings.
I have several business connections in Yreka and other parts of Siskiyou County, and come up there fairly often for transacting business and appearing in court.
Although I don't fully understand exactly what's happened here, perhaps because of some facts omitted in your question, I may be able to help you with a further analysis, or even do your Answer to the lawsuit at a reasonable rate. I'll be back in Yreka before month end, I think, on other business. Please feel free to contact me with more details.
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