Most banks and institutional mortgages are fully amortized. That means there are no balloons payments. If you bought on a wrap you want to know what that underlying mortgage says. If there is a balloon it would be up to the owner of the property to settle or refi. If it some other situation with a non-assumable loan that is whole other story. Buyer Beware!
Posted by Richelle on October 29, 1998 at 06:42:43:
I get a seller to give owner financing, I think it’s a wrap around mortgage, for the full amount of the purchase price. That would cover their mortgage payment plus whatever is leftover on the payment. Then their mortgage comes due, will the bank renew their mortgage when they don’t own the property anymore?