WHAT to do? Balloon Mortgage NOW due!?

Deal Score0

I know answer – lose home – but I’m looking for other advice!
New home we built in 07 – have $ 100k – can’t refinance anywhere – bank only gave us a 1 year balloon – which is now due in a few days. note, this if for entire mortgage. They may extend, but we don’t have paperwork yet or maybe they just want home!
We are not late – just owe property taxes yet.
I guess we most likely have no grounds to sue since we signed paperwork, right?
Should I consider a loan modification attorney since they seem unwilling to work with us and just want all their money?
Scratch the grounds for suing – I know that what we have is all hear say. We’ve told them we can’t afford it and bottom line is we should of gave them house when they refused to give us more $ to finish construction a year ago. They told us to beg, steal and borrow to get Occupancy and they’ll turn around and give us HELOC. They never did and we’re stuck. Our fault for believing crooks. What do you do? Let them have what they wanted all along – the home.
They want the loan off their books and paid for in full. That is what they want. We can’t find a way to make it happen, so we lose home. I guess that is the bottom line. Just looking for an ounce of hope. 🙂

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7 Comments
  1. Reply
    Common Sense
    May 16, 2011 at 3:14 am

    Grounds to sue? For what? That smacks of over entitlement. No one held a gun to your head and forced you to sign the paperwork.
    If your current bank won’t refinance I’d consider a chapter 13 bankruptcy to keep the house.

  2. Reply
    Lauren F
    May 16, 2011 at 3:43 am

    The bank probably doesn’t want to have yet another foreclosure on its books. I would talk with them and see if they will convert it to a conventional mortgage. Don’t wait for them to call you – contact them. Also, talk with a realtor and find out the market value of the house. You need to find out if you have any equity in this house, or if you owe more than it is worth. If you do owe more than it is worth, you may need to scrape up some cash from other sources to get to a refinance. If you have some equity, you can probably refinance.

    No – you don’t have grounds to sue as you agreed to the terms of the loan.

    Otherwise, if you are so far below what you owe on it, and the bank won’t work with you, stop making your payments and instead set aside money for first/last/security on a rental.

    Good luck.

  3. Reply
    chatsplas
    May 16, 2011 at 3:50 am

    WHY did you sign up for such a deal and get yourself into this mess???
    What on earth could you sue them for? They honored their deal with you!
    Pay your property taxes. Any indications that you have overextended yourself will decrease your chances of getting them to rollover this loan or to extend it to 5 years.

    You need to be polite, but aggressive in dealing with bank, trying to get them to give you at least a 5 year balloon if they won’t give you a conventional loan, or at least to renew for a year. BEfore going to an attorney for loan modification, I’d go to any local government/nonprofit agency helping home owners save their homes from foreclosure.

    It may be that you just set yourself up for failure and there is

  4. Reply
    hurtlocker2010
    May 16, 2011 at 4:40 am

    You can’t sue.

    You need to refinance and quick. Someone out there will refi you. Start with the lend that has the balloon on your property. You’ll have to be frank with them. Explain that it’s refinance or foreclosure. Foreclosure costs them a butt-load of money. If they have any sense at all, they’ll refi you. Also, when you talk to them, the first person or two you deal with will likely be worker bees, and they will probably tell you no. Just ask to speak with their supervisor. Go up a few levels and someone with some decision-making power will likely see reason and help you out.

  5. Reply
    TheMom
    May 16, 2011 at 5:15 am

    You can’t sue, No grounds. You accepted their money, not sure why you think they are wrong for expecting it returned.

    You can’t modify a balloon loan, there is nothing to adjust, the entire thing is due. You already agreed to refinance it, now you need to do it.

    See if they will refinance into a fixed rate, most banks will.

  6. Reply
    loanmasterone
    May 16, 2011 at 5:56 am

    Most lenders will work with you through their Loan Modification Department. You should inquire of you bank the qualifications to apply for a modification.

    An extension is possible, but you must inquire this of your lender. You should be on the telephone requesting a loan modification or an extension of your mortgage loan.

    The lender do not want your home, I have no idea where this started. It would appear as it the lender sat down when you made your loan application and said “Let’s made them the mortgage loan so we can get their house when they fail to make the monthly payments.” Boy that is a stretch as they went through the trouble of seeing if you were qualified to obtain the mortgage loan.

    Taking your home through foreclosure would cost the bank more than if you pay your mortgage on time. This is what they prefer as they are not in the business of selling houses.

    Loan modification request are made to be completed by the homeowner. With a little common sense and help from your bank you should be able to complete the loan modification application.

    Most homeowners normally throw up their hands when they see more than 2 pieces of paper to complete and holler how do I complete this tome of paperwork and how much time will this take. Since this attitude is prevalent among Americans firms such as Loan Modification companies have propped up.So for a fee these companies will assist and complete the loan modification application. Guess who supply the information, You the homeowner. Some or most charge an upfront fee.

    Remember that these companies are like lawyers, they can not guarantee the results you are looking for, however they expect payment either way.

    You have no grounds to sue anyone. You are the one that signed the loan docs indicating that you could make the monthly mortgage payments.

    Call your lender or bank, they are willing to work with you. You know your financial situation, they do not so call and make them aware of your financial situation, so they might help you.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  7. Reply
    Tom H
    May 16, 2011 at 6:43 am

    Apply for and obtain a loan from another bank to pay off the balloon payment. But it is too late for that as the processing of your loan application can take weeks. Since you waited too long, you may need to find other living accommodations ASAP because the bank will repossess or foreclose on your house. See an attorney now. He would have the best options than most people on YA.

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