I've been approved for a $200,000 SBA small business loan. I am injecting $100,000 and offered half of my home as collateral. I am getting a divorce and we are putting the house on the market to be sold. The lender forgot about my current marital status when he sent the term sheet, and now wants my soon to be ex-wife to agree to the transaction even though the collateral being attached is my portion. She will not cooperate.
I need to come up with $50,000 in collateral to replace using my home to help secure the loan. Can I ask the bank to increase the loan $50,000 and have them issue a CD to hold as collateral? Is there any other way I can get the $50,000 collateral?
Its hard to say whether a bank will increase your loan. In many cases, increasing the loan to hold the funds as collateral doesn't serve the intended purpose of having collateral on the loan amount that is exposed.
Having half a home as collateral also serves no purpose. If they had to foreclose, they would be completely inhibited by the owner of the other half. They wouldn't be able to do anything without consent.
One option is to sell the home faster and use the funds you receive from that. Another option is to scale back your need for funds.
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Its hard to say whether a bank will increase your loan. In many cases, increasing the loan to hold the funds as collateral doesn't serve the intended purpose of having collateral on the loan amount that is exposed. 