Replies

“Paying off the loan with the proceeds of the sale will clear the title.”

Not sure how that would have solved his business debts.

If someone/institution offered to pay off his mortgage for $170k, then he no longer can be the title holder, and would have still been forced to either vacate the property, or rent it out from the new owner.

And, with his home listed as collateral, there is no way for any other buyer to assume ownership of his property, even if they purchased it by paying off the mortgage balance - can’t transact the sale of the property if their is a lien placed on it. In this case, it was the bank that had it listed as collateral against his business loans.

Times are tough, and small businesses are in a fragile state, but if this person overextended himself and made some bad decisions in retrospect, it is not the bank’s fault. He did offer to put up the house as collateral.

One avenue for providing relief to small businesses that are on the brink of default would be TAX RELIEF, assuming that they were not running their business in an incompetent manner.