1.7% Offer in Compromise settlement – a new office record
I recently had the joy of experiencing a very quick acceptance from the SBA on an offer in compromise. Not only did it take less than 60 days from the time it was submitted to the bank to the time that I heard that it was accepted, but the numbers involved were truly incredible.
The guarantor owed $821,561 on a 7A loan, and we were able to get the balance reduced to $14,600 – the majority of which could be paid over time. $806,961 lopped off the balance in one fell swoop. How did I get this low of a settlement? It’s simple – the settlement figure ($14,600) met or exceeded what the lender would’ve received using forced collection efforts (a judgment). That’s determined by valuing the assets and liabilities of the guarantors – if you can PROVE (using third party appraisals/valuations) that your OIC value is better than what the creditor could forcibly extract, you’ll be able to secure incredibly low offers such as this one.