It was very interesting the FNA's we did where the homeowner had a ballon and didn't even know it. It was also amazing how much denial they were in once it was pointed out to them. "Can't be! You don't know what your talking about! QUOTE]
I thought you couldn't issue a balloon note for owner occupied single family residence. Adjustable yes. Balloon? No.
I remember uncovering over a dozen of these ballons where the homeowner was only paying interest and the full amount of the loan was due at the end of the term. The problem was convincing them that they had this type of a loan. Most were in a house way bigger and cost more than they could afford.
Should have been illegal for the banks to issue these loans, but wasn't....Maybe things are different now?
Actually there were only a few we could help or wanted help. Most of them didn't qualify for a better loan. Either they didn't make enough $$$ to qualify or their credit was so screwed up they couldn't get any thing better. Some just didn't want the higher payment and said they would deal with it later. Sad...I couldn't imagine paying on something for 15-20 years only to owe the same amount as what I originally paid for it?