3 payments behind & Balloon due? - Posted by Ryan B.

Posted by dewCO on October 09, 2001 at 11:51:34:

Yes, get her to allow you to talk to the lender. Howver, there really isn’t a loan to reinstate if there is a balloon. That means it’s at the end of the loan term. They would need to extend the term and allow a reinstatement. So you need to understand what you’ve got and what to say to them. Basically, do they want to get back a house with somewhat slim equity (at least for them) and go through the holding costs etc. or allow you to help this woman?

3 payments behind & Balloon due? - Posted by Ryan B.

Posted by Ryan B. on October 08, 2001 at 17:24:49:

I had a lady call me because she saw 1 of the “We Buy Houses” signs I have placed around town. Heres the deal:

She owes $52,000
Monthly Payments $450
3 payments behind ($450x3) $1350
A Balloon Payment due now

This is a nice 3 bed/1,1/2bath in a smaller town. The home is probably worth $55,000-$62,500. I think I could get a T/B in with $2,500-$5,000 Down, a Monthly Rent of $550-$600, with a Purchase Price of $62,500.

My question is how could I get the bank to bypass the balloon payment? It’s allready 3 months behind. I told the seller to call the lender and see if they would reinstate the loan if she made up the late payments, and also if they would let the loan stay as it is until she could get it sold.

She called them but got no answer, I told her to keep calling and to give me a call when she found out.

Should I try to get permission to talk to the lender?

I would like to try to get the sellers to Deed me the property and I’ll make up the back payments, and keep the loan current. Put a T/B in the home or Sell On an Unrecorded Land Contract for more down.

I am 21 years old have been studying for 3 years, just recently set up a Corporation, 800#, WebSite, and have been sending out Post Cards, Placed Signs up Around Town. I am getting calls! It’s pretty stressful trying to sound like a pro to these people knowing I’m only a beginner. But I realize I am here to help people, to offer them a solution to their real estate problem’s. If I, can Great, if I can’t I tried.

What keeps me going is I know where I’ll be in 10 years, I’ll be free from financial stress, doing what I want to do, not what I have to do!(That is if the U.S. keeps the war under controll.)

Any comments would be apperciated. Just think 5-10 years ago you couldn’t get feed back from a group of experienced investors like you can TODAY! Let’s take advantage of it.

Re: 3 payments behind & Balloon due? - Posted by Rick - Calgary, Canada

Posted by Rick - Calgary, Canada on October 10, 2001 at 15:12:04:

How much is the balloon? Can the terms of the balloon be negotiated, changed, extended? Offer the lender 50 points more interest to rewrite the paper, remember good terms are just as valuable as a good price…Negotiate with the lender for sure if a foreclosure action is inevitable…depending on the economic climate where the house is, chances are the bank / lender doesn’t want the house…In my experience, lenders will work with you almost every time…they don’t like hassle or frustration…it sounds like you can avoid that for them…

Re: 3 payments behind & Balloon due? - Posted by Skip (CA)

Posted by Skip (CA) on October 09, 2001 at 14:08:53:

Ryan:
No answer for your question, but kudo’s for the actions that you’ve taken. Keep at it and I’m sure we’ll be seeing a success story from you shortly!
Skip