In the case of owner-financing a home... What happens if the buyer fails to make the balloon payment in the?

Question

time alloted? There is a contract to deed. The appraisal is below the cost owed on the home and therefore a loan to refinance will still not help??? What are the consiquences of this dilema???

Answer 1

It is spelled out in the contract for deed.  READ it carefully.

Answer 2

Well, a loan to refinance WOULD help, unless the remaining amount that the person owes is more than the appraised value of the house.

But it would sound like time to talk to a lawyer, to make sure of what can be done and that it's done properly.

Answer 3

Then the buyers will have to be evicted from the home.  You should have had an attorney draw up the papers when you sold on contract.  Go back to the attorney and make sure everything is done legally.  You don't want this coming back to bite you when you try to sell it again.

Answer 4

No buyer is ever able to pay the balloon payment.  That's when they realize that there was a lot of "wishful thinking" in the original agreement.  If you don't pay it in full, you get the notice that the sheriff will be escorting you out in 30-60-90 days.

Do not negotiate a balloon payment.  You'll be sorry.

Answer 5

you have to pay to the bank what you own to them .You can modify your mortgage to negotiate new terms on your loan.My advise to you is to use loan modification specialist instead going directly to the lender- anyway it will be cheaper to pay them , then to be stuck with the balloon loan .