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Another delinquent SBA loan lands in court
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Posted on Nov 22 2004
Delinquent disaster loans acquired from the U.S. Small Business Administration are flooding the court, as many debtors continue to default on their debts.
Lawyer Bruce Mailman filed another civil action yesterday on behalf of Texas firm LPP Mortgage, Ltd. to collect on a delinquent disaster loan.
Mailman earlier said his law firm is handling some 90 cases on behalf LPP, which had acquired rights over the loans from the SBA.
The new civil action impleaded Edward A. and Dorothy S. Concepcion as defendants.
In the complaint, Mailman said the Concepcions issued the SBA a promissory note in the amount of $23,100 plus interest in February 1995 after acquiring a disaster loan. The Concepcions mortgaged a 3,085-square meter lot on Saipan to secure the note.
LPP acquired rights over the loan, note and mortgage sometime in 2001. Mailman said the Concepcions defaulted on the loan payment, prompting LPP to notify them about it in October this year.
Mailman said the Concepcions owe LPP the principal amount of $18,554.14 plus more than $1,152.24 in interest. He asked the court to compel the Concepcions to settle their debt with LPP.
Mailman also asked the court to foreclose the mortgaged lot so it could be auctioned to generate proceeds to satisfy a possible favorable judgment for LPP, if the Concepcions fail to fully pay within three months after the issuance of that court ruling.
