Tuesday, October 14, 2008
Balloon payment
I've been wondering now about an offer I had back in 1983 to invest in real estate. The plan was to pay a reasonable sum every month, then after a period of some years there was to be this big, seemingly insurmountable and huge payment to make. It seemed scary to me at the time. I had other prospects in view as well, so I passed up the opportunity to make payments on real estate in the San Fransisco Bay Area. Now I'm wondering if I had gone for it would I have been one of the ones guilty of the present economic crisis?
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3 comments:
I don't think so. The real estate market back in the early 80's (that's when my parents were buying their property and it was a bad time), as I recall, was tough going. I think it was more the 90's when people really started doing crazy things. I might be wrong about this... someone else may come along and say otherwise- that'd be nice to know. I think it's more likely you'd have been scammed at the time by the 'sellers' in some way.
I have just caught up on your posts...I really like the fishing ones in the north sea. Cool...more than the water! Like the others too!
You would have made payments for a predetermined amount of time and
then at the end of that time you would be paying a LARGE payment to
satisfy the debt.
Thats similair to the deal with these folks that lost their homes in
the latest crisis.
Some signed up for payments at x amount for b amount of time. After b
came and went then they were liable for payments with inflated
interest rates. Deal breakers for sure!
Glad you went the other route.
Brother Bergh
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