Posted by Dave T on April 22, 2000 at 11:11:36:
If your loan is current and you have an on-time payment record, the lender might be willing to waive the balloon and continue to accept your scheduled payments for the next 3.5 years until the loan is fully repaid.
It doesn’t hurt to ask and you may come out way ahead even if you have to pay a point to modify the loan.
Balloon Payment Due - Posted by jessica soncek
Posted by jessica soncek on April 21, 2000 at 06:47:57:
Hi Folks, 3 1/2 years ago i bought a fixer upper house on land contract. Amortized for 7 years 3 months at 8% with a balloon due may 2000. I paid the guy who was living here under an LC 5600 to buy out his equity and took up a new land contract with deed holder for 16500 with balloon of 9500. Heres the problem/s: For one my credit is poor, number 2 is despite my having the bathroom remodeled, kitchen drywalled and a whole host of other upgrades this house needs alot of work still. It has 3 roofs on it and 60 amp electric with screw in fuses etc. If it was all fixed up i would never have been able to afford it. Anyway does anyone know of any private sources who might pay off my balloon and take up a new 24-36 month land contract with me? If i had to put some cash down or pay 12-15% interest i could live with that. I live in central wisconsin, house is assessed at 25k fair market about 29k. Most homes like it in my area sell in good shape sell for 40-65k. Thank you…jessica soncek
Approach the contract holder - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 22, 2000 at 14:50:27:
IS the contract holder motivated and willing to be flexible so that you can get them a significant amount of CASH today rather than have to continue to finance you or “roll over” your loan?
If so, your contract for deed can be amended to roll you into more long term financing and then sold in whole or part for CASH that would go to the holder. This may be an easy way for the seller to avoid having to take legal action against you and to also realize CASH out their contract today rather than later.
We’ve purchase many privately held mortgages, trust deeds, and contracts where this same THEME has been evident. The payor is able to pay monthly and has paid timely BUT they cannot refinance and pay off the entire balance due to the private party lender.
Michael Morrongiello