This is a six month balloon with no monthly payments.
They are planning on sending the money to my PO Box.
With this in mind if they make a few payments and then
stop I am not at risk for being late. If at the end
of six months they have not payed me completely, I
will just take what they have given me, pay down the
note and refinance with monthly payments and rent it
or something. That is my view on it. Am I missing
something? Would I still have to go through
forclosure to do this? Will you explain qualifying and wrap vs assume?
I have rehabbed a house that another real estate company is interested in purchasing. I have a six month balloon note which is due 10/17/2001. This company wants me to ask for another six month balloon (which is possible) pay me my profit at closing and pay off the balloon in six months. Is this a good deal for me? Can anyone give me the pros and cons of this (will I have to pay insurance and taxes, etc.)? My impression is that I will have to redo my balloon by the 17th anyway, but this way I will get my profit and someone will be promising to purchase the house. Also, if they are promising to pay it off in six months I would want some kind of monthly installments to make sure after six months if they decide not to buy I will have something to pay down the note with
I bet the lender won’t allow them to assume with qualifying, so then there’s probably no benefit to assuming. Maybe they want you to do a wrap or something. IF you do this, make sure you require them to pay the money for the payment to YOU, or to an escrow company that you’ve picked out, so you can easily monitor whether or not they are making payments on time. If they actually do assume, it may be your credit on the line if they payments aren’t made on time. YOU need to be ready to step right in and cover it if not, and then be ready to get the property back by filing foreclosure.