[StBernard] SBA vs. LRA

[Westley Annis]

 Dave, I suppose in my case, a second mortgage is what killed my chance of
survial using an SBA loan? ..and paying off the $18,000 on it will clear
SBA? It would allow me to reduce the amount of money I got from the $60,000
of insurances (or $42,000, then borrow the rest needed for a home? In
supposing a home equal to mine was worth $148,000, that would mean a loan of
$106,000 and the note would be much too high of what I had. Thus, I'll be
stuck with a Katrina Cottage sort of permanent home for the duration of my
days... :(

Jer.

-----Original Message-----

If your loan with SBA is over $10,000 You will need to have some sort of
collateral. They will want to use your damaged property as collateral. If
the amount you receive from LRA would be enough to pay off SBA, that's fine.
But if it doesn't cover the entire loan amount from SBA your monthly payment
will not be reduced. Your total loan would be reduced and you'd be paying a
shorter time.
SBA loans money for your property, contents and other things . From what I
undertand LRA only pays for your home.
So the possible money from LRA likely wouldn't be enough to pay off your SBA
loan. Read the loan closing papers when you get them and you'll understand.
It's quite a lo to chew on. I wouldn't give anyone advice one way or the
other.

Thanks,
David Jochum