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Company Loan Type APR Est. Pmt.

Is it legal to have a 1 year balloon mortgage?

Posted on: 26th Aug, 2006 10:43 am
Hello,
I hope you can help me, but I think we have a illegal mortgage on my home in florida. Is it possible to have a 1 year balloon mortgage? we closed on our property on 3/3/06 and we\'re supposed to pay the full balance by 3/3/07, is this legal? Some sources are telling me that law have changed and balloon mortgages are to be around 5 years not 1 year.

Thank you,
Donna Whelan
Lake Wales, FL 33898
1 year ballon mortgage looks something new. Most popular ones are the 5 year and 7 year balloon mortgages. Did you check company profile before taking the 1 year loan. It seems to be fishy somewhere.
Posted on: 26th Aug, 2006 10:06 pm
Hello, when you say "company profile" meaning lender? We are under "seller financed" we pay our mortgage payment to previous owner holding mortgage. I don't know what my rights are and not sure the 1 yr balloon is legal.
Posted on: 27th Aug, 2006 08:20 am
Hi Donna,

I guess Fraser wanted to know if you have checked the lender's background before opting for the 1 year balloon mortgage. Anyway, you should go through the mortgage note and the disclosures that your seller has provided you. All the terms and conditions of your loan will be stated there.

Regarding your rights as a borrower, you may go through http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm for a better idea.

Thanks,

Sara.
Posted on: 27th Aug, 2006 08:54 pm
Hi,

Balloon mortgages are short terms loans offered for a minimum of 3 years. The loan offered to you is not illegal provided all terms and conditions in the loan document are legal.

Thanks.
Posted on: 27th Aug, 2006 09:33 pm
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