Balloon Payment Coming Due

Comments(8)

• 
  Lufos29th January, 2004

  Have your local Mortgage Specialist select a loan for you. Couple of necessary questions.
  
  What was purchase price of prop
  
  How much money down on prop
  
  Unpaid bal on note coming due.
  
  What is prop worth at this instant
  
  Post your answers and all shall be made known to thee.
  
  Awaiting Lucius

• 
  kenwinnick29th January, 2004

  What was purchase price of prop - $114K
  
  How much money down on prop - $20K
  
  Unpaid bal on note coming due. - $90K
  
  What is prop worth at this instant - about $164K (various improvements, including well and nice cabin)
  
  Post your answers and all shall be made known to thee. -- Many thanks!

• 
  geo_choy29th January, 2004

  Is the prop 1-4 units residential or a commercial prop? N/O/O or O/O?
  
  Is your agreement w/ seller a lease purchase or straight purchase w/ owner financing and what was the agreed upon purchase price?
  
  Do you have or can get cancelled checks showing payment to owner?
  
  Is your credit better than 700+ and do you have any verifiable assets?
  
  Last question, are you looking for just rate and term or r/t w/ cash out?
  
  Depending on your answers, you might be able to still get a loan. Or you could ask seller for an extension.

• 
  Woodstove29th January, 2004

  Is the prop 1-4 units residential or a commercial prop? N/O/O or O/O?
  (note: name change)
  It's a residential property (1 unit per 5 acres). Agreement is a straight purchace w/owner financing. All payments over the past 5 years can be verified. Cash out.
  
  I think my first option is to seek extension on the owner financed loan.
  
  One other question for you experts out there...is there anything to prevent me from simply selling the property and then paying off the loan?
  
  --

• 
  evajean88029th January, 2004

  Hi,
  I'm certainly not a lender but with that much ltv I would think most lenders would pay that off for you whether you have a job or not.
  
  If you own it, why wouldn't you be able to sell it? Sell it!
  
  In my area, (L.A.) houses go fast! How is the market in your area?
  
  Start calling lenders asap!
  
  Good luck and keep us posted.
  
  p.s. Also there may be someone on this board who could do an equity split with you??

• 
  BAMZ29th January, 2004

  Hi kenwinnick,
  
  If you discover that you cannot get conventioanlly financed right now, I would appraoch the owner of the note who sold you the property. Tell them that you will add $500 to $1000 to the payoff amount if they will extend the balloon for 1 more year.
  
  Hopefully the property will appreciate a little more during this time, and it will give you some time to get your finances / job situation in a better postion for a loan.
  
  Best of Success!
  
  BAMZ

• 
  Woodstove29th January, 2004

  Thank you all for your great replies. It's all very intriquing, if also a bit stressful because of my direct involvement in this "deal". I really appreciate the help. Nice forum.

• 
  omega129th January, 2004

  Nice to meet you evajean880,
  
  The question here is how can he/she(?) refinance and keep the property rather then how can he get out under it...
  
  BAMZ offered a fine advice and the only thing I would like to add-up is a comprehensive perspecitive that would sound like this:
  
  Talk with number of brokers. Let them find you the program that will best fit your position. Do not apply for a loand unless the chances are in your fawor that you'll get what you want. When you find the program, try to refinancing and if it doesn't work out, go back to property seller and ask him for an extension like BMAZ sugested.
  
  If, and only if non of the above works, then consider selling the property to protect the equity (or it's part depends on the local market condition).
  
  [ Edited by omega1 on Date 01/29/2004 ]