Posted on: 06th Oct, 2008 08:17 pm
I have a business loan that was collateralized against my home. When the loan was issued 3 years ago it was set as a balloon that is now due. No one seems to have the money to loan me for the balloon payment now. Since the bank is third on my house which is now underwater, what options do I have and can they sell my house? I told the bank I would be willing to pay the Line of Credit over five years but they don't seem interested. I've never been late on my current loan either! They told me I need to be looking for another lender...but that seems fruitless so far. I don't understand why they would even want to sell my home since it is worth less than what I owe. Thanks!
it would seem your bank is not happy with its position - go figure.
as we have all seen, obtaining business loans is far more difficult than it used to be. if your banker hasn't been reading the newspapers or watching tv, then i could understand this lack of knowledge. but how can anyone miss it?
i agree with your assessment of this, chillbro; it would not benefit the bank to take action. i would suggest you negotiate hard with them to try to rectify this. your suggestion of paying it over a 5-year period sounds like a grand plan to me. of course, maybe you told them it had to be 0% interest - if so, they might balk. and don't worry...that's just me being facetious.
negotiate...it's in their best interest to negotiate with you.
as we have all seen, obtaining business loans is far more difficult than it used to be. if your banker hasn't been reading the newspapers or watching tv, then i could understand this lack of knowledge. but how can anyone miss it?
i agree with your assessment of this, chillbro; it would not benefit the bank to take action. i would suggest you negotiate hard with them to try to rectify this. your suggestion of paying it over a 5-year period sounds like a grand plan to me. of course, maybe you told them it had to be 0% interest - if so, they might balk. and don't worry...that's just me being facetious.
negotiate...it's in their best interest to negotiate with you.