How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Alex J. Your Own Question

Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3496
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

I was approved by my bank for a business loan of 90K secured

Customer Question

I was approved by my bank for a business loan of 90K secured by SBA. Just before the date of the closing my bank calls and brings to my attention that while reviewing my files of another two secured loans that I also have with the bank they noticed a mistake on the deeds that needed to be fixed. One loan ends on 2026 and the other ends on 2035. Both loans are secured by different properties. The property securing the loans ending on 2026 also secures the loan ending on 2035 as an additional collateral but only until 2026 as stated on the loan payment title agreement. They now want to extend the title documents to 2035 claiming that is a mistake they found which needs to be fixed. As I stated the new loan does not have anything to do with the other ones.
Submitted: 1 month ago.
Category: Law
Expert:  Alex J. replied 1 month ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. When you signed the loan, did you reasonably believe this to be a mistake? Kind regards AJ

Customer: replied 1 month ago.
No, at all. Actually in fact I believe there is no mistake nor there ever was. The idea to go beyond and secure the 2035 loan with the property of the 2026 was only to cover a small gap that the bank had in their loan to value mumber needed to approve the loan. In fact the manager at that time had told me that once that gap was covered he could begin a process to release the additional property ffrom securing that loan. That was not stated anywhere else nor the bank now reconizea it. That mamager no longer works or is available. The first loan was signed on 2001 (2026, 480k owes 259k) property appraised at that time for 600k and the second loan on 2005 (2035, 371k owes 291k) and appraised for 400k. Now there is a property devaluation because of the economy and the last appraisal done on 2011 was for 500k.
Expert:  Alex J. replied 1 month ago.

Hi, Thank you. To clarify, is the issue here that you do not want to give the bank any additional security? Kind regards AJ

Customer: replied 1 month ago.
No, I do not want to give additional security.
Expert:  Alex J. replied 1 month ago.

Hi, Thank you. Presumably the bank are asking you to sign a deed to amend the security? What is the consequence if you refuse to sign it? Will they not make the additional loan?

Customer: replied 1 month ago.
That is correct!! I think is an act of undue influence! The new loan has nothing to do with the deeds already made.
Expert:  Alex J. replied 1 month ago.

Hi, Thank you. The problem as this is a business loan, the new loan is subject to contract, you cannot therefore force the bank to give you the new loan. You can complain about their conduct to the Financial Ombudsman on the grounds that this is worth less than 2million - but I am not sure you have a civil claim for the bank refusing loan. Can you get the loan from another entity? Have you suffered any losses?

Customer: replied 1 month ago.
I guess I can get the loan from another entity and with a good chance since it is an SBA (federal goverment secured) approved loan. Yes, I have suffered losses, and more that that they always told me the bank approved the new loan. I made promises to pay suppliers on that faith of being approved. They always made me think I was going to get the loan. This came at the last momment at the appointment for closing the new loan. Do you think I can get all my documents back from the bank. I am very dissapointed with their conduct. I think this is an act of undue influence or duress.
Expert:  Alex J. replied 1 month ago.

Hi, Thank you very much. Can you tell me which bank this is? Kind regards AJ

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Last | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice