Balloon mortgage payment due in July 2010!?

If you do not sell or pay the note as you agreed they foreclose, just like it says there on your contract.

Don't re-pay a back balance on a repossessed car...you won't get the car back and it's just money going out...sad to say, he already screwed you on this one.

You have to find a way to make the balloon payment or refinance (or sell) before it is due. This is why balloon payments, ARMS, interest only and other non-traditional mortgages helped drive the housing crisis to begin with.

If you are unable to pay the balloon payment in July, the lender will initiate foreclosure.

Are you working with a Realtor to sell your home? If you home has been in the MLS for more than 30 days with no showings at all, it is overpriced, unappealing to buyers or a combination of both.

Your Realtor should be advising you on comparable sales in the area and how to make your home more "sellable".

With no offers in 30 days, I always advise my sellers to reduce their price.

If sales in the area indicate that you would have to sell your home for less than you owe, you are now "upside down" or "underwater" on your mortgage.

Another alternative to avoid foreclosure is a short sale, when you sell your home for less than you owe.

You will have to prove financial hardship to your lender, prove that you have no assets, and get a letter of agreement to a short sale from the lender.

I agree with the other poster about not paying the car.

Where are you located? I may be able to help, but I would need more information. Click on my profile and there's a link to email me if you are interested.

You lose your house if you cannot find refinancing.