U
/u/CinderWitt
Guest
I wanted to get some second opinions on this.
I have a friend whose trying to save her parents home. Their house is getting foreclosed on. She and her boyfriend applied for a loan to purchase it, but while the loan was approved, the bank refused to accept it because her last name connects her to her parents, and the bank wants to get rid of the loan all together to someone else.
Their broker suggested her boyfriend open an LLC, and purchase the house using a balloon loan. He has them convinced they will be able to refinance to a normal mortgage within three months, or simply sell the property to not have to ultimately pay the balloon payment at the end. This would allow them to walk away with a profit to benefit both my friend and her parents if everything goes right.
They live in North Fort Myers, FL, so they live in an area with decent housing costs. The loan would be for $140,000, and the house appraised at $260,000.
My concern is my friend and her boyfriend were not originally prepared to buy a house. All fees and closing costs will be rolled into both loans. They do not have the money saved up to get out from under any additional fees or taxes.
Has anyone seen success with a balloon loan? Are these numbers in a good enough range where they'll be okay? Any feedback is welcome!
submitted by /u/CinderWitt
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Advice about a friend who was offered a balloon mortgage to save her parents house
Continue reading...
I have a friend whose trying to save her parents home. Their house is getting foreclosed on. She and her boyfriend applied for a loan to purchase it, but while the loan was approved, the bank refused to accept it because her last name connects her to her parents, and the bank wants to get rid of the loan all together to someone else.
Their broker suggested her boyfriend open an LLC, and purchase the house using a balloon loan. He has them convinced they will be able to refinance to a normal mortgage within three months, or simply sell the property to not have to ultimately pay the balloon payment at the end. This would allow them to walk away with a profit to benefit both my friend and her parents if everything goes right.
They live in North Fort Myers, FL, so they live in an area with decent housing costs. The loan would be for $140,000, and the house appraised at $260,000.
My concern is my friend and her boyfriend were not originally prepared to buy a house. All fees and closing costs will be rolled into both loans. They do not have the money saved up to get out from under any additional fees or taxes.
Has anyone seen success with a balloon loan? Are these numbers in a good enough range where they'll be okay? Any feedback is welcome!
submitted by /u/CinderWitt
[link] [comments]
Advice about a friend who was offered a balloon mortgage to save her parents house
Continue reading...