Posted by WilliamGA on June 20, 2000 at 16:59:11:
The first couple of houses I bought were on balloon notes. The 6 month kind. I found that I didn’t like worrying about how I was going to deal with the upcoming due dates on them. Didn’t need the headache. Didn’t like being at the mercy of a banker who could just say, “Nah, I ain’t gonna roll them. Get a new loan.”
I heard someone, maybe it was here, call a balloon note a “foreclosure in embryo”. After seeing what happens to some investors who use them, I am beginning to agree.
These days I like to find sellers who will just “give” me the property. Its so much easier that way.