Real Estate Law
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Hi - my name is ***** ***** I'll be glad to assist.
I'm sorry for your situation and certainly understand that you want to save your home.
If you have a balloon note, that means that there's a large lump sum payment at the end of the loan. This is done in order to make monthly payments cheaper throughout the purchase process. Often, people will refinance the balloon payment amount with another lender and pay it out later.....and that's something you could do here if you can obtain a loan / giving the property as collateral for the loan.
Ok.....that's unusual for a balloon note to be every year.....but it is permissible.
That said, if the loan is in default, then the lender has a right to foreclose. But, you also have the right to stop the foreclosure by paying the debt in full before the foreclosure sale.
But, your time to pay is however long you have between now and the foreclosure sale date/auction date.
One other option is to file chapter 13 bankruptcy and stop the foreclosure sale. This will allow you to set up payments under a plan approved by the bankruptcy court.......so you can pay the debt off at a different monthly amount over a longer period of time.....which is likely to help your cashflow.