Legal Question in Real Estate Law in West Virginia

balloon loan

My parents own property worth nearly 100,000.00, They wanted a new mobile home, the bank would only accept the property against the loan, they were told they would get a 30 year loan, with a interest rate that would be re evaluated every 3 years and could rise 2 points each time until it capped at 17%. They did not see any of this in a truth and lending disclosure, the mobile home dealership which provided the bank for the financing brought the mobile home and delivered it before the papers were seen or signed. the papers came in the mail to be signed and sent back, the papers truth in lending states my parents are to be financed for 3 years with a balloon of 42,881.00 due in one payment in 2006. with a interest rate at 8.843, they were told, 8.24, and a monthly payment of 391.00 they were told 348.00. Now this trailor is in their yard, they are not signing the loan papers, and the bank says this is the way they told my parents it would be in the first place, and they do not have 30 year loans, and it is a true balloon loan that would need to be refinanced every 3 years. The mobile home dealer wants cash for the delivery of the mobile home, and cash to pick it up, or they must sign the deal.


Asked on 1/30/03, 9:38 am

1 Answer from Attorneys
Thomas Zimmerman Zimmerman Law Office

Re: balloon loan

Your statements imply that your parents wish to rescind or reject the mobile home. There are requirements that a supervised lender must follow in West Virginia by state and federal statutes. There are common law and Uniform Commercial Code issues that seem to arise out of the situation. I suggest that your parents contact a lawyer very soon. Even if they don't hire him or her to represent them, it is important that they find out what their rights are. It is essential that all of the documents be reviewed and the sequence of events analyzed to make any determination of rights in this instance. Best Wishes

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Answered on 1/30/03, 10:10 pm


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