[StBernard] Question for SBA

[Westley Annis]

POINT OF INFORMATION:

Please look at your original loan documents:  

1. Promissory Note
And 
2. Mortgage

These should be sent to you if you were forced to pay off your loan with
your mortgage lender.  If not, demand a copy from the company.  

In the mortgage there is a section under insurance proceeds which will
state the intention of the lender in the event that the house is
destroyed and you do not wish to rebuild.  It should have language
similar to "Lender may use insurance proceeds either to repair or
restore the Property or to pay amounts unpaid under the Note or this
Security Instrument, whether or not then due."  This is the key phrase
that the SBA is looking for.

This should suffice for the SBA and get you off the hook of trying to
get a "Demand Letter" out of your mortgage company.  This should help
streamline things because it tells you up front that the lender is not
going to just give you the insurance proceeds to do with as you please.
So therefore, if your intention is not to rebuild/repair then you must
pay off your mortgage.

Hope this helps!!!

JIM