How to Structure SBA 7(a) and 504 Short Sales December 18, 2012

How to Structure SBA 7(a) and 504 Short Sales
When: Tuesday, December 18, 2012
2:00pm-3:15pm ET
Price: $289.00
Sponsored by PCFS 2000
Complimentary Small Business Banking News of the Day Talk Show with Bob Coleman and Charles Green: 1:50 p.m. to 2:00 p.m.

How to Structure SBA 7(a) and 504 Short Sales
Unlimited Access with DVD/Transcript $389.00 USD

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The term “short sale” is used to describe a real estate transaction where the seller owes more on the debt(s) secured by the property than the property is worth, and the seller’s secured creditor(s) agree to release their lien(s) on the property even though the creditor(s) will receive less than the full amount due on the debt(s) from the proceeds of the sale. Generally, because the proceeds belong to the secured creditor(s)–not the seller–the secured creditor(s) can negotiate the amount of closing costs paid from the proceeds of a short sale, such as real estate commissions.

This webinar addresses issues the lender must consider in negotiating a short sale.

What Lenders need to know when dealing with these transactions
Timing issues
Title issues
SBA issues

What prospective Purchasers need to know if they want to have the best chance of a successful closing of one of these deals
Timing issues
Title issues
SBA issues
Important deal points

What Seller’s need to know if they want to have the best chance of a successful closing of one of these deals
Timing issues
Title issues
SBA issues
Important deal points

Short Sale Approval

Standard of Review

A request from a borrower to approve a short sale should be analyzed in the same manner as any other request for release of lien for consideration. The test is whether the dollar amount offered as consideration in exchange for release of the lien is approximately equal to or greater than the Recoverable Value of the property. At a minimum, the documents that should be reviewed include:

(1) Real Estate Listing Agreement;
(2) Real Estate Purchase and Sale Agreement;
(3) Short Sale Addendum to Purchase and Sale Agreement;
(4) Current title report;
(5) Draft settlement statement;
(6) Consent letter from any other lender whose agreement is required to complete the short sale;
(7) Post-default Appraisal of the property; and
(8) Pre-approval letter from the purchaser’s lender.

Credit Bids

1. Requirement
A Credit Bid should be entered at all real property lien foreclosure sales initiated by SBA, a 7(a) Lender or CDC to foreclose a lien securing an SBA Loan, whether the sale is judicial or non-judicial.

2. Credit Bid Amount
To determine the amount of a Credit Bid the following factors must be considered: (a) Recoverable Value; (b) the loan balance; and (c) need for and ability to collect a deficiency judgment. The Credit Bid amount should be based on the Recoverable Value of the collateral and should not exceed the amount of the loan balance. Further, the entire loan balance should not be bid if doing so would eliminate an otherwise collectible deficiency.

Eviction Proceedings 

If title to real property collateral is acquired by SBA, the 7(a) Lender or CDC through foreclosure or otherwise and there are tenants or others unlawfully occupying the premises, it may be necessary to evict them. Consult Legal Counsel to determine the appropriate course of action.

Who should attend?

SBA department managers
SBA loan underwriters
Lender Workout specialists
Special assets personnel
Liquidation attorneys
Chief Credit Officers

Our panelist is the national expert who has earned that distinction the hard way — through personal experiences of liquidating SBA 504 loans.

Join us as we discuss in great detail the steps you need to take to document your borrower’s equity correctly.

This webinar is rated “EXPERT” for the attendees.

Coleman’s Webinar level of instruction guide:

ELEMENTARY — The webinar assumes the audience has no experience in the topic.

BASIC — The webinar is for small business lenders who have some experience in the topic. The webinar is designed as the Topical 101 course. This is the appropriate level of instruction for managers who oversee the function.

INTERMEDIATE — The webinar solves an unique problem for the small business lending professional. A strong working knowledge of the subject matter is recommended.

EXPERT — The webinar discusses detailed, technical and advanced topics for the well-seasoned professional. A strong working knowledge of the subject matter is a must.

Who should attend

Small Business Bankers
SBA Loan Packagers
SBA Loan Closers
Small Business Banking Managers
Small Business Loan Underwriters


All Coleman Webinar attendees will receive a e-Certificate of Participation.

This is documents your continuing education history for the regulators.

Also, this documents the answer for SBA’s Review question of continuing staff education.

Please forward the names of and emails of all of those attending the webinar.

We will issue e-certificates of participation at the conclusion of the webinar.

Join our Expert Instructor:

Mitch Fogel
Fogel Law Group

Licensed to practice law in Florida since 1987, Mr. Fogel founded Mitchell C. Fogel, P.A. in Ft. Lauderdale, Florida in March of 1991. Presently, the law firm is known as the Fogel Law Group (FLG). Formed to provide the highest level of legal services, counseling and professionalism to its clients, FLG has closed numerous loans for its lender clients, including hundreds of SBA 7(a) and 504 loans, earning the firm an excellent reputation nationwide for its expertise in SBA loan transactions. Most recently, FLG has been engaged by many of its lender clients to handle modifications, workouts, foreclosures and liquidations of both SBA 7(a) and 504 loans. Please visit the Areas of Expertise section of the firm’s website for more information on how the firm can assist you with your legal needs.

Bob Coleman
Coleman Report

Bob Coleman is the Author of “Money Money Everywhere And Not a Drop For Main Street“. Coleman is the Editor of the Coleman Report, a trade newsletter for small business bankers. He is the nationally recognized expert on small business banking. He has appeared on Fox Business News and CNN and has been quoted by most major financial media outlets including the Wall Street Journal, New York Times and Bloomberg. He has spoken at numerous small business banking events across the United States, including international engagements. Coleman has a B.A. in Medieval History from the University of California Santa Barbara and a M.B.A. in Real Estate Finance from the University of Southern California.

About Coleman Webinars

Coleman takes great pride in bringing you the foremost experts in our industry. Not only our experts chosen with care, we bring you instructors who are excellent teachers of their craft. Coleman’s Webinars provide 75 minutes of highly specialized information, access to industry experts, live Q&A, and step-by-step “how-to’s” on a variety of topics relevant to today’s small business banker. Coleman hosts five to six webinars a month, making us the largest producer of webinars for the small business banking industry in the country. Monthly SBA topical webinars are conducted by John Dunn and Lisa Lerner, our national professional SBA instructors.

Dunn and Lerner’s presentations solve pressing problems facing today’s SBA lending professionals. On the second Tuesday of the month, the author of the bestselling “The SBA Loan Book” and the just released book, “Get Financing Now,” Charles Greene presents a program on a topical small business lending underwriting subject. An SBA loan liquidation themed webinar the third Tuesday of each month. We rotate the instruction with three of the finest experts in the country — Ethan Smith of SBA lender boutique law firm Starfield and Smith, SBA lender attorney Mitch Fogel, and Kerri Agee, of banc-serv, the president of the largest SBA loan service provider in the country.

Our SBA University webinars are for small business lending sales personnel who wish to learn, and refresh, outstanding sales techniques to achieve over-the-top sales goals.

Finally, we offer a monthly series of topics for bank chief financial officers to help them with the ever evolving world of loan reporting issues. Our professional instructors are Bob Judge of Government Loan Solutions and Jon Winick of Clark Street Capital.

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Sponsored by PCFS 2000

About PCFS 2000

PCFS 2000 provides the finest software products designed specifically for SBA lenders by addressing all of the unique needs of this specialized industry. Our Special Assets Manager “SAM” is the only Workout and Liquidation Program designed for SBA Loans. “SAM” organizes all of your workout and liquidation documentation in one convenient database enabling you to correctly submit a complete SBA Guaranty Purchase Package. Please go to for more information.

The Fine Print

1) The single user registration fee of $289 is based on location not attendance. You may have as many people in one location attend. You many distribute the materials to anybody in your company.

2) For only $100 more, you may invite as many people from your institution from as many locations as you wish. (You also get the DVD and transcript!)

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5) As with all our products, we offer a 100% money back satisfaction guaranty — no questions asked.

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Call Joseph Coleman at 800-617-1380
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How to Structure SBA 7(a) and 504 Short Sales

Unlimited Access with DVD/Transcript $389.00 USD


Bob Coleman
607 Foothill Blvd # 546
La Cañada, CA 91012
(818) 790-4591
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