US property mkt losses to top $387.5b Jul 16, 2009
Total losses for outstanding commercial mortgage-backed securities (CMBS) loans may be as high as 9 percent to 12 percent as borrowers fail to meet monthly payments, or get an adequate loan to meet the balloon payment when a current loan matures, according the report. Total losses on loans securitized from 2005 through to 2008 are expected to be in the range of 11. (India Times)
Rowlett to purchase a new fire engine Jul 10, 2009
The engine's final balloon payment of 214,643 is due in August ... A fire department report presented to the city council at a wok session on Tuesday stated that the funds required for the final balloon payment for Engine 2 would be better invested in purchasing a replacement engine with an expected front line service life of 10 years ... The bank's representatives were unwilling to negotiate the balloon payment with the department, and though initially resistant to the department's desire to... (McKinney Courier-Gazette, TX)
SBA helps firms refinance with 504 loans Jul 7, 2009
This new program could be a big boost for small businesses carrying a heavy debt load or facing a balloon payment on a real estate loan, but there s a catch: The refinancing is available only to small businesses that also want to borrow money to expand their businesses. Only 5% of small business owners think now is a good time to expand, according to a May survey by the. (Memphis Business Journal, TN)
Expanding firms can refinance loans through SBAs 504 program Jul 5, 2009
This new program could be a big boost for small businesses carrying a heavy debt load or facing a balloon payment on a real estate loan, but there s a catch: The refinancing is available only to small businesses that also want to borrow money to expand their businesses. Only 5 percent of small business owners think now is a good time to expand, according to a survey conducted in May by the. (Albany Business Review, NY)
Brampton Brick Announces Completion of New $30 Million Term Financing Jun 30, 2009
Principal repayments commence in July 2011 at $500,000 per month in the months of July to November inclusive ($2,500,000 per year) to 2015, and a balloon payment of $17,500,000 in June 2016. The rate of interest is fixed at 8. (CCNMatthews Press Releases)
Agency loans $50,000 to local business Jun 26, 2009
The five-year loan carries an interest rate of 6 percent, with a balloon payment due one year after closing. Hanni said the loan will be used as working capital for the store, which has recently expanded with a larger inventory and a sister operation, the neighboring Appliance Depot. (Montana Standard, MT)
Smaller Homeowner Bailout Already In Place Jun 23, 2009
Your hardship letter should demonstrate job loss, a serious health condition, an ensuing balloon payment, a coming adjustable rate reset or some other financial calamity that will preclude you from making your mortgage payments as scheduled. 2. (RealtyTimes)
Letters to the editor Jun 20, 2009
It's a lot like the credit crisis - we've been living beyond our means, and the balloon payment is now due. If we ignore it, nature itself will foreclose. (San Francisco Chronicle -- Opinion)
Wraparound mortgages legal, but carry high risk Jun 1, 2009
I am a little leery of a small down payment with high interest payments for a few years and a balloon payment at the buyer's refinance later ... I am a little leery of a small down payment with high interest payments for a few years and a balloon payment at the buyer's refinance later. (San Francisco Chronicle -- Business)
Commercial real estate in straits May 31, 2009
This is a "call" or "balloon payment" and means there is a loan balance at the call date. Borrowers pay off the loan balance by getting a new loan. (Anchorage Daily News)
City Council to discuss financing purchase of Klamath Memorial Park$250,000 offer by Davenport's includes $25,000 down May 26, 2009
A balloon payment after 3 years would pay off the loan. Payments of $4,562 a month would save Davenport s about $3,500 over its current costs, the offer states. (Klamath Falls Herald & News, OR)
Moving Truck Courtesy of the Recession May 21, 2009
When her mortgage came due, so could a balloon payment of $25,000, Erin and her husband realized. "We were in shock," Erin writes. (Slate)
$1M for mechanic school? May 21, 2009
The Cowboy Automotive Technology Center would rent the building for about 40,000 annually for perhaps 15 years and would eventually own the building with a balloon payment at the end. The center would provide automotive work to the community, which would put it in competition with local businesses. (Cody Enterprise, WY)
Foster parents needed May 14, 2009
A balloon payment is expected upon there 18th birthday to help them move to a secondary education environment (college). When you die, you will be expected to give them anything that is left. (Brewton Standard, AL)
GMSA takes steps to protect brand and rev up consumer confidence May 11, 2009
It covered only the normal monthly repayment for a vehicle and not a balloon payment in terms of a structured finance deal. Repayments on behalf of consumers stopped once they were re-employed. (Business Report, South Africa)
State House News briefs Apr 29, 2009
The deal is the subject of great consternation among the administration and lawmakers, who are hoping to stave off the balloon payment, in part by backing the debt obligations of the turnpike through June. A bill to do that is awaiting final action in the Senate, where it has been delayed by Sen. (Burlington Union, MA)
Senate sends Mass Turnpike credit bill to Gov. Patrick Apr 17, 2009
Supporters of the bill say it represents a hedge against a potential demand for a balloon payment, estimated recently at $371 million, associated with the swap agreements, which date back to 2001. Critics say the bill carries too much financial risk for the state's taxpayers and does not include sufficient disclosure requirements aimed at shedding light on other government financing agreements. (Marblehead Reporter, MA)
What cards does ElementOne have up its sleeve? Apr 7, 2009
King 3 states that "balloon payments on termination do not generally meet the requirements of a balanced and fair remuneration policy" ... Not only does he get a huge balloon payment, but he will benefit from "good leaver treatment", which means he will be able to hold on to his share options. (Business Report, South Africa)
More help for homeowners Apr 5, 2009
The forbearance amount will be due as a balloon payment when the loan matures, when the property sells or when the interest balance has been paid off. You may qualify for this program if. (Casper Star-Tribune, WY)
Falling interest rates ignite that vital spark in vehicle sales Apr 3, 2009
The calculation is based on the assumption that a car is fully financed over a five-year period, with no deposit or balloon payment. She said there would be further gains by June, because the benchmark prime rate, now 13 percent, "is expected to fall to 10.5 percent". (Business Report, South Africa)
The Great Treasure Hunt of Boone to close by June 1 Mar 26, 2009
"We knew that we might close for a long time because buying the building from the Chamber, we had a two year balloon payment that was due June 1 with the assumption that I would be doing well enough that a bank would loan me the money to buy the building from the Chamber and I would be making my payment to the bank until it was paid off. Well, right now, the bank's not loaning anybody the money. I went to the Small Business Administration in Ames and they couldn't see any way I could keep it... (Mid Iowa Enterprise, IA)
Tarr allows bill to move ahead as Turnpike asks to use $13M in reserves to postpone toll hike Mar 22, 2009
Patrick administration and turnpike authority officials have called it likely that UBS will demand a balloon payment if the credit rating of the turnpike's bond insurer, Ambac, is further downgraded by Standard & Poor's. The Senate, on a 2-1 vote with only three senators present, agreed to retreat from its bill and adopt the House version. (Hamilton Wenham Chronicle, MA)
Regulators Shut Banks In Colo., Ga., Kan. Mar 22, 2009
"all you got was a huge mortgage while they 'pocketed the interest" - not saying there aren't 'shady lenders' out there, but be realistic - ARM loans are a HUGE culprit in this mess, as are illegals and not requiring a SS # and backround check - you get someone who delivers dominos pizza for a friggin living, they sign up for a 1% 5 yr ARM on a 400K house, their ARM comes due in a balloon payment or a re-fi they can't get for conventional because of low income or bad credit, that's the... (CBS News)
Loan payments hit Jagged Peak bottom line Mar 18, 2009
It was first issued in December 2006, and Jagged Peak began to make monthly installments of $45,000 beginning in December 2007 with a final balloon payment of $920,000 due in December 2009. By the end of 2008, Jagged Peak still owed $1. (Tampa Bay Business Journal, FL)
AnswerDesk: Im walkin Mar 16, 2009
Answer Desk: Mortgage alternatives - Answer desk- msnbc. Why its a bad idea to walk from the mortgage. (MSNBC -- Business)
Answer Desk: Mortgage alternatives Mar 16, 2009
Why its a bad idea to walk from the mortgage. Also: What's the best way to consolidate my debts. (MSNBC -- Business)
Lowering Mortgage Payments via Loan... Mar 13, 2009
If the goal of 38% of gross monthly income is still not reached, the lender can begin to forbear principal (due in a balloon payment upon maturity of the loan). After the lender gets the payment to the 38% goal, the U.S. Treasury will match further reductions dollar-for-dollar until the new monthly payment is within 31% of the homeowner's gross monthly income. (Suite101.com)
Family Gets to Keep Its Cave After All Mar 12, 2009
It was a five-year loan with a balloon payment at the end. The Sleepers now have until May 1 to pay off the remaining $83,000 or sell the property. (ABC News -- Business)
Kaneland looks to refinance debt Mar 10, 2009
Created:Tuesday, March 10, 2009 12:07 a.m.CDTFONT SIZE. By JONATHAN BILYK jbilyk@daily-chronicle. (DeKalb Daily Chronicle, IL)
Bakery's power struggle swept up journalist Mar 9, 2009
He was hoping to stave off a balloon payment coming due on the bakery's headquarters building on San Pablo Avenue in Oakland, records show. However, as the case advanced in Bankruptcy Court, Bey IV had a change of heart. (San Francisco Chronicle)
Repeat drunk driver gets prison term Mar 6, 2009
The final version of the legislation authorizes Treasurer Timothy P. Cahill to join Patrick administration officials as they attempt to negotiate with UBS to avoid the balloon payment, which UBS could demand if Standard & Poor's downgrades the credit rating of turnpike insurer Ambac Assurance Corp. (State House News Service). Baby, mother fine after rush-hour delivery A little bundle of joy decided not to wait until her mother could reach the hospital yesterday. (Boston Globe)
Details from new Panthers contracts emerge Mar 5, 2009
The Panthers chose to cut him rather than make the balloon payment, and he signed a six-year, $30 million deal with Chicago hours later. Also making the bonuses for Lewis and Kemoeatu unlikely is the team's philosophical opposition to option bonuses, since they're non-refundable. (Herald Online, SC -- Sports)
Cave Dwellers Slammed By Credit Crunch Feb 27, 2009
They went as far as to sell their DVD collection to come up with a 50 percent down payment, but now, the balloon payment on the mortgage they took for the other half of the purchase price is coming due, and they've been unable to refinance to cover it ... Why would they choose a 5 year balloon payment for a home ... Why would they choose a 5 year balloon payment for a home. (CBS News -- Early Show)
State worries Pike debt deal out of control, could hit $363 million Feb 27, 2009
State Administration and Finance Undersecretary Jay Gonzalez told lawmakers Thursday he believes it s quite likely that the Massachusetts Turnpike Authority s bond insurer s credit rating will be lowered further, which would leave the fiscally ailing agency on the hook for a balloon payment valued on Wednesday at $363 million ... If Ambac s credit rating is downgraded and the balloon payment is requested, a 30-day window would open for negotiations between UBS, whose interest rate swap... (Marblehead Reporter, MA)
Even Cave Dweller Can't Escape Recession Feb 25, 2009
It was a five-year loan with a single balloon payment at the end. Related. (ABC News)
For Sale: One Underground House For $300,000 Feb 25, 2009
The Sleepers say they have a big balloon payment due and they haven't been able to arrange new financing. They say they might not sell if they're able to get a new loan for their cave. (KWTX.com, TX)
Credit crunch closes key downtown store (2004) Feb 20, 2009
Sherry wrote on Feb 17, 2009 3:40 PM:" That's scary. The bank can call your loan if you are current with payments and there is no balloon payment due. So what good is a contract then? ". Barb wrote on Feb 17, 2009 4:06 PM:" The scary thing that we all need to be aware of is a clause that exists in almost all conventional, and non-conventional commercial mortgage agreements that enable banks, or other financial institutions, to call a loan. That is, they can demand that you pay the... (St. Joseph Herald-Pallidium, MI)
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REAL ESTATE: Analysts warn of commercial meltdown : North County Times - Californian 02-10-2009. Entertainment Extras. (North County Times)
Dark clouds loom for commercial real estate Feb 10, 2009
They are essentially bridge loans that require a sizable balloon payment at maturity, he said. Most commercial property owners refinance that debt before the final payment is due. (AZCentral -- Business)
State Capitol Briefs, Monday, Feb. 9 Feb 10, 2009
The value of the swaptions deal has fluctuated wildly, with the recent estimates leaving the authority vulnerable to a balloon payment of more than $400 million if the swaptions are terminated and officials are unable to negotiate an alternative. The latest state financial disclosure documents estimate the value off the UBS swaptions at $354. (Belmont Citizen Herald, MA)
County buys land for third park Feb 8, 2009
That total includes the down payment, principal and interest payments on a five-year note the seller agreed to carry, and a balloon payment of 2 ... Baethge said funds for the payments on the note and the balloon payment will come from the countys general fund. (Boerne Star, TX)
