[StBernard] SBA demand letter

[Westley Annis]

Today I received the letter I needed from Fidelity Homestead  which I need
to submit to SBA for the loan. The Fidelity manager said that last year,
Fidelity was only issuing the letter for homes that were being demolished
because that meant there would  be  no collateral and thus the mortgage had
to paid off. They now have a letter that satisfies SBA and it basically says
that after Fidelity consulted with the homeowner and elected to enforce a
certain paragraph of the mortgage, the insurance check made payable to
Fidelity and homeowner was used to pay off the mortgage and anything left
over was given to the homeowner. The letter states all these amounts.  So if
you couldn't get a letter in Nov or Dec from Fidelity, call them back
because they have a form letter that they will now give you to provide the
"evidence" SBA needs. According to SBA, such a letter lets them increase the
loan amount for some homeowner because they realize that you aren't holding
on to 100% of the insurance proceeds, i.e. a chunk went to pay off a
mortgage. Perhaps the other mortgage companies and banks are doing the same
now.
 
Ddk