CIT Small Business Lending

[Kit Jackson]

Brief history. Back in 2007 I took out a loan with CIT that was backed by the SBA. It was in

my LLC name but I personally guaranteed it foolishly using my house as collateral. Fast

forward to today and I have enough equity to pay the lien off. However on a Title Search

I did in 2020 it shows the lien in 2nd position to CIT Small Business Lending.  I did speak

to the Treasury Offset division who stated I did have one SBA backed loan for a much lower

amount than the lien.  That of course makes a difference in equity so how can I find out what

I actually owe?

[Jacob Sherman]

Would have to call and order an official payoff from the lender 

[Kit Jackson]

Quote from @Jacob Sherman:

Would have to call and order an official payoff from the lender 

 After detective work I now found who has the loan/lien on my house.

ReadyCap Lending.    This is an email I just received from their rep:

"

The initial appraisal cost would be paid by ReadyCap but the expense would be taken from any from the sale/refinance and settlement to release the lien.

The plan would be to determine the amount of equity based on the updated appraisal and first lien and then negotiate a settlement with you for the release of the lien. Just quickly based on the amount of the first and a quick check of Zillow there could be a substantial amount of equity in the real estate. If that is the case, we would have to discuss your offer and the remaining principal balance on the loan. If we could not agree on a number, then a foreclosure would have to be started. Again, first we determine the amount of equity."

Can you break that down to me like I'm in 6th grade what the rep means?  If they're in 2nd position and even if there's substantial equity how could they move into any type of foreclosure??