What is a Balloon Rider and a Condominium Rider?

[BBYGRL]

Just curious as to what these docs are and what they're used for.

[ShanetheMortgageMan]

A "rider" is an additional document attached to another legal document - in mortgages that would be either the note, deed or mortgage.  The balloon rider would be applicable if it was a balloon mortgage, like where you'd have equal payments for 15 years (but 30-year amortized payments) and then at the end of 15 years the remaining balance would have to be paid in full at once.  A condominium rider would be applicable if the subject property was a condo.

[Anonymous]

so If a person has this On their current mortgage and the loan was up for the 15 year review could the Loaner ( the issuing loan company) demand the balance in full ? also COuld a Balloon rider be an actual person that is able to pay (through the duration of the loan ) any outstanding late fees, taxes, and aplicable misc. fees to be the considered the Primary owner at the end of the loan? and If so Is this leagl and is there any way of getting rid of a Balloon rider or fighting it in court...We never knew our mortgage had a Balloon rider and didnt even know nor was it ever explained to us what a balloon rider is or does. Before the signing.

[MarineVietVet]

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@Anonymous wrote:

so If a person has this On their current mortgage and the loan was up for the 15 year review could the Loaner ( the issuing loan company) demand the balance in full ? also COuld a Balloon rider be an actual person that is able to pay (through the duration of the loan ) any outstanding late fees, taxes, and aplicable misc. fees to be the considered the Primary owner at the end of the loan? and If so Is this leagl and is there any way of getting rid of a Balloon rider or fighting it in court...We never knew our mortgage had a Balloon rider and didnt even know nor was it ever explained to us what a balloon rider is or does. Before the signing.

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Hi rayfalcon and welcome.

You found a nearly three year old thread. Shane hasn't been online in about two months but hopefully someone else will see this and be able to answer your questions.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

Thank you for letting me know Hopefully someone can :-)

[IOBA]

I don't think you would have a case to sue the lender over the balloon rider.  It sounds like it was something you signed at your closing.

Yes, the lender could demand the payment in full when the balloon payment is due.  (Uusally the last payment in the 15 yr cycle is the balloon payment.)

What you could do...

1.  Try to refinance with your current lender.

2.  Ask for a rate extenion/loan extension (where they would extend your loan out another 5,10, or 15 yrs, with basically the same terms).

3.  Refinance with someone else.

When did you purchase the home/refi the home with the balloon rider? (balloon payment)?   Who is the lender?