Re: Foreclosing on a carryback balloon mortgage

Sellers who take back notes to sell property usually do it because they’re naive, lack options, and/or don't wanters. Buyers want seller financing because they can’t get bank financing, don’t want the hassle, and/or to manipulate the seller into discounting the note in the future. If a bank doesn’t want to do business with the prospective buyer, neither should you. In the original poster’s situation it appears that the buyer was probably bankable assuming he had good credit.

My advice is to not take back notes. The concerning part of the posting was “we carried back the rest for 12 months at buyers request.” It’s the seller’s property and they should set the tone in negotiations. Not the buyer. The more crap you you put up with in negotiations the more crap you get in closing or in this case post-sale. Patience and discipline are extremely important in selling or buying RE. The party that’s not afraid to walk away from a sale at any time gets the better end of the deal.