Private Mortgage Balloons & Seasoning
I am amazed at all the private mortgages out there with balloons wanting to sell a note. Not only balloons but balloons with no payment required except for the balloon payment. Home sellers thinking about utilizing owner financing need to understand that allowing a balloon payment only private mortgage essentially gives them a permanent unseasoned note no matter how long the mortgage has been around. So if you plan to sell private mortgage in the future, be sure the buyer makes payments even with a balloon note.