Charlie Chancetaker likes the low interest rate offered by the 360/60 balloon loan on which he settles. He is not worried about going into foreclosure because his company transfers him every four years and he intends to sell the home and pay off the loan well in advance of the balloon call. Which of the following would not represent a possible problem when the time to address the balloon call arrives?
A. He might not meet one of the conditions of modification
B. His home might be worth less than what he owes when the time arrives to sell
C. He might no longer be working for his employer in four years and therefore won’t be transferred
D. He might still work for his employer but his employer might not transfer him
Answer:A
Charlie Chancetaker likes the low interest rate offered by the 360/60 balloon loan on which he settles. He is not worried about going into foreclosure because his company transfers him every four years and he intends to sell the home and pay off the loan well in advance of the balloon call. Which of the following would not represent a possible problem when the time to address the balloon call arrives?
A. He might not meet one of the conditions of modification B. His home might be worth less than what he owes when the time arrives to sell C. He might no longer be working for his employer in four years and therefore won’t be transferred D. He might still work for his employer but his employer might not transfer him