Mr. Malc represented a client who received two commercial loans totaling $930,000.00. The loans were insured by the Small Business Administration (“SBA”). When the client’s up-and-coming business fell victim to extraordinary challenges, the business shuttered, and the loans could not be repaid. Mr. Malc’s client did all it could to mitigate damages to the Bank, including selling assets to repay a portion of the debt. Despite those efforts, the Bank filed a foreclosure complaint to foreclose the mortgages that secured the two loans, and also filed a separate complaint to collect the unpaid balance of the loans.
Mr. Malc challenged both lawsuits in court and was able to hold them in abeyance while settlement discussions ensued. Mr. Malc spent approximately two years negotiating with the lending bank, the SBA, and the United States Treasury. With accrued interest, the bank was seeking to collect nearly $1.2 million dollars from Mr. Malc’s client.
In the end, using multiple litigation and settlement strategies, Mr. Malc was able to get the bank and the SBA to forgive the debt, release the personal guarantors, and discharge the mortgages. With the mortgages discharged, Mr. Malc’s client was able to sell his home for a sizable profit and get out from under crippling debt.
If you are facing foreclosure or a collection lawsuit, whether it is related to residential, commercial or SBA-backed debt, Ryan S. Malc, Esq. has the knowledge and experience to guide you through that process and to assist you in achieving the best possible results.
Contact Ryan Malc at 732-363-0666 Ext 254, or send him an email at rmalc@bathweg.com.
