General Housing Information

questions & answers

Question: I have a balloon note I didn't know I had one.now they want $163.000 buy the end of this month my morgager didt tell me and I didn't read the contract because I trusted him now I don't know what to do????????

Answer: If a homeowner cannot pay the balloon payment when due, and wants to avoid foreclosure, he/she should quickly work with a lender to learn available alternatives. For example, some balloon notes have a “Re-set” option, using current market rates and using a fully-amortizing payment schedule. If your loan does not contain a Re-set option, re-financing the amount of the balloon payment may be an option, if your home is worth more than the balloon payment owed. Although Balloon Notes are not common, since the recession which began with the collapse of the home mortgage system in the U.S., they are not unlawful. Any home loan transaction which truly defrauds a homeowner, is unlawful, however, such a case may or may not succeed in litigation (court of law). An attorney can advise you (see this website “Legal Assistance” http://azlawhelp.org/legalaidlisting.cfm) Also see the ‘Housing Topics” section of this site, including Questions and Answers for Borrowers and Predatory Lenders Book