I have a s/s with B of A as the 1^st, PNC as the 2^nd and an SBA lien.  I have not had a file with an SBA lien and originally the person at the SBA (Boston Private Bank) told my client that they do not stand in the way of short sales and they would remove the lien.  My clients are divorcing and the Husband’s intention was to have the SBA loan transferred to him as it was for his business.  Well, that person quit and although we have all the emails going back and forth the new person that took over said they will not remove the lien (to put in Husbands name only and take off house – Husband wanted to continue to pay) nor will they negotiate it down.

When I spoke to B of A about this they told me to wait until we had an offer and then start trying to negotiate with them.  I just put it on the market as we have the approved price from B of A which is fair but not if I have to try to get a buyer to come up with $50k to pay the SBA off.  My seller just quit paying the SBA lien because he feels like the house will end up going to foreclosure and they will have to BK which neither of them wanted to do.

We will probably have an offer very soon so I wondered if anyone has dealt with SBA liens and how they worked with them.  The sellers have no money to contribute but are completely willing to give any incentive B of A gives towards it but that will barely put a dent in it.

Any advice would be greatly appreciated. Thank you