Legal Question in Banking Law in Virginia

Balloon Loan

January of this year a gentle man came to my home stating that I was 2.5 years behind on a mortgage payment, I explained to the guy that this was impossible since my payments are automatically taken out of my pay each month. The gentleman told me that I needed to contact his office to make payment arrangments, I went to a lawyer who advised me to pay the amount that the man was saying that I was behind, I did. However, as of last week I received a letter stating that I was in default of the loan, and if I am understanding correctly if I don't come up with this lump sum amount I can lose my home.

Is there any legal recourse for me?


Asked on 11/05/03, 12:30 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Balloon Loan

You need to have a local lawyer look at the loan documents and advise you. If there is a balloon payment due, you may be able to stop foreclosure with a bankruptcy or by re-financing. If not, and they try to foreclose incorrectly, you may be able to ask the court to stop the foreclosure. Without seeing the documents, it's not possible to give you a better answer.

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Answered on 11/05/03, 10:17 am


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