Disabled, elder client seeking assistance w/ a Balloon Mortgage. In July of 2018, client acquired his mother’s property through probate. Client inquired the possibility of doing a reverse mortgage. His realtor advised him that he wouldn’t qualify unless he remodeled the property because it was in bad shape and offered to assist him w/ the process. Realtor advised that he should obtain a home equity loan to afford the repairs needed and began the process. Two weeks after their conversation, realtor picked him up and drove him to the realty to sign forms. After signing he received a $60k loan however, he only received $46k because the remaining $14k was applied to “fees, Interest, and taxes”. He made $30k available to realtor immediately to begin the renovations. Around August 2018, realtor assured the work was almost completed. He asked for another $7k for carpet installation and a stove that needed to be replaced. He gave realtor the $7k and never heard from him after that day.
Turns out client had actually signed for a balloon mortgage Loan, not a home equity loan. Client looked through the contract and realized the addresses included there are unknown to him. The agreement also states the property is his “investment” property which is untrue. The principal balloon payments together w/ all accrued interest is fully due by July 17th 2019. Client is afraid he is approaching foreclosure risk and wants assistance w/ investigating this loan agreement and possibly voiding it if he has any defenses. He also claims that the work done on the property wasn’t completed because his ceiling is currently caving in and his floors are unfinished.
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