What happens if you default on an SBA loan?

Have a line of credit with the bank. WHat happens when I default on the loan?

  • Do they take my house since I have an equity loan with them also?

  • Answer:

    They can't take your house if you didn't use it as collateral for the loan. Unsecured loans are just that, no tangible property to take. They can aggressively try to collect from you which will make your life miserable. If your home equity loan is the only loan on the house, then yes they can start foreclosure if you default on those payments, and there is no first mortgage.

MichaelW at Yahoo! Answers Visit the source

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