Delinquency on SBA loans high

A high number of delinquent loans obtained from the U.S. Small Business Administration is up for collection after a Texas firm acquired rights over the loans from the SBA.

This information cropped up in the wake of reports that the delinquency rate on loans obtained from the Commonwealth Development Authority has reached a high of 83 percent.

The law firm White Pierce Mailman & Nutting is handling some 90 loan cases on behalf of Texas firm LPP Mortgage Ltd. At least seven of these loan cases have already reached the Superior Court for foreclosure proceedings.

Recipients of these loans are mostly residential owners, who mortgaged real property to secure their respective loans amounting to up to about $60,000 each. The law firm is also handling cases involving commercial loans.

In some of these cases, the borrowers managed to restart paying for their loans in installments. Others, however, continued with their delinquency, prompting the law firm to proceed with foreclosure proceedings.

Lawyer Bruce L. Mailman said that some 10 foreclosure cases would be filed in court soon. LPP acquired interest over some 26,000 SBA loans given out nationwide.

Yesterday, Mailman filed on behalf of LPP a lawsuit that seeks to collect on SBA disaster loans obtained by Saipan residents Victor T. and Frances A. Taitinfong. A loan obtained in 1992 totaled $14,700, while another obtained in 1997 totaled $51,200.

The suit also named as defendants Miguel P. and Dolores A. Agulto, who mortgaged 234-sqm and 901-sqm properties in Chalan Kanoa and in Dandan, respectively.

The first loan’s outstanding principal balance remains at $9,136, while that of the subsequent loan is still about $56,000. Both amounts exclude interests and late charges.

Mailman contended that the Taitinfongs defaulted on the loans, notifying them about the default last May. No further payment on the loans was made despite demand, the lawyer said.

The suit also seeks to foreclose the mortgaged properties to satisfy possible favorable judgment by the court for the LPP.

It also named as defendant one Terry Corp. Ltd., which has interests over the mortgaged properties. LPP asserted, however, that its interests over the lots are superior to those of Terry Corp.