How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dimitry K., Esq. Your Own Question
Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
Type Your Legal Question Here...
Dimitry K., Esq. is online now
A new question is answered every 9 seconds

Deal=Initial offer of 1.15M accepted. 400K at closing, bal

This answer was rated:

Deal=Initial offer of 1.15M accepted. 400K at closing, bal of 750K 12 months later in one balloon payment.

What can go wrong with this deal?

Thank you for your follow-up.

What can go wrong is if the party who owes the balloon payment has no funds to provide to the creditor. It would likewise affect the deal if the value of the property drops, or if within 12 months the property is intentionally gutted or damaged which would bring the value under the balance owed. Then the creditor could potentially take the property back but still be at a net loss for the property. From the buyer's perspective if they do not obtain financing or obtain assets in 12 months, they may lose the property outright to the creditor due to default.

Good luck.

Customer: replied 4 years ago.

Other than simply not having the balloon payment to finish the deal is there any "scam" involved in this 12 mo later balloon payment type of deal ? Is this common? Seller will hold title and be the first lienholder on the property.


Thanks in advance




Such agreements are somewhat common but I would still urge you to have an attorney review the contract. There might not be 'scams' per se, but there may be conditions that are designed to potentially help you default, which of course is in the creditor's best interest as they can then retake the premises. This is the major issue, that if the debtor defaults, he loses everything based on contractual terms.

Good luck.

Dimitry K., Esq. and 4 other Legal Specialists are ready to help you