Posted by River City on October 17, 2007 at 08:14:00:
I believe we need a little more information than what you have given. Is there a loan on this property? If so, there is most likely a due on sale clause and any agreements the sellers have with your parents might not be legal. If this is the case, I would highly advise your parents NOT to make a balloon payment. They are not required by contract to do so until 2010. Chances are, the sellers might file bankruptcy, and if this transaction is not legal, your parents stand a good chance of losing everything they have put into the property. They need to get legal council NOW to review their paperwork to see exactly where they stand.