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DrakeLAW, Lawyer
Category: Real Estate Law
Satisfied Customers: 363
Experience:  Attorney at Drake Law Firm PLC
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I took a hard money loan on my house -- the ballon payment

Customer Question

i took a hard money loan on my house -- the ballon payment is due in a couple of months and i wont be able to pay it. can they foreclose my house?
my first loan is on track and i haven't been late nor have i been late paying the interest on the hard money loan.. (please note that it is a SECOND hard money loan with a second lien)
what are my options?
Submitted: 6 days ago.
Category: Real Estate Law
Expert:  DrakeLAW replied 6 days ago.

Hi, my name is ***** ***** I look forward to helping you, please give me a moment to review and possibly research answers to your question.

Expert:  DrakeLAW replied 6 days ago.

Yes, they can foreclose. One option is to file a chapter 13 bankruptcy before the balloon payment date and then proposing a plan to pay the balloon over 5 years.

Your other options are getting a refinance to payoff the balloon or negotiating with the second lender to refinance its own balloon. (aka a loan modification).

Does that answer your question?

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