SCORE counselor and small business journalist Jerry Chautin gives a nice SBA Short Sale 101 in his column today. SBA niche practice attorney Mitch Fogel and I even get a nod in his article.
“The 504 program grants SBA a one-year right of redemption to purchase the property. And if property values continue to rise in Southwest Florida, it is conceivable SBA might try to recapture some of its losses by exercising their redemption rights later on.
“Fogel says the right of redemption “supersedes state law and constitutes a cloud on title to the property, which limits the marketability of the property.”
“But webinar moderator Coleman told the audience, ‘Don’t be afraid to go down that road with the SBA’” because it is willing to forego its right of redemption in return for a reasonable fee.”