Balloon payments are highly discounted Harold. Perhaps you could create a note with the buyers on you for a second and let your note buyer buy the note from them to give them the required 15,000. If the house appraises well, the note buyer will let you know what percentage and terms he needs. In this case scenario, you would have to assume the 1st mortgage. Another way would be to create your own mortgage note with the sellers on the full agreed to price and sell it to your note buyer. In any case, you have come up with some creative ways to finance the house.
I have an owner thats desperate to sell,heres the particulars. They owe 54,000 comps show the houses in that area are selling between 82,000 and 85,000. They need 15,000 to move and the monthly payments are 450.My first thought was a wrap-around because I could easily l/o for 700 to 750 per month but I would have to get 15,000 down to satisfy the sellers. Then I thought I could sell the house for 85,000 get 10,000 down 75,000 at 12% interest only for 5 yrs with balloon of 75,000 due after 5 yrs. My question is could I sell this note for 65,000, wich would be around 76% ltv, to pay off first loan of 54,000, put 15,000 in my sellers pockets(10,000 down + 5,000) and put 6,000 in my pocket.