My bank was bought out by another bank and I received a letter stating the new bank would assume my five year balloon, which had already passed the due date. That was last year. Now they returned my last payment and want payment in full. What can I do?
Seek a refinance elsewhere. A balloon loan is due in full at maturity. Many lenders make balloon loans and renew them for the borrower when they mature, but there is no obligation on the lenders part to do this, nor on the borrowers to keep the loan there. Ask them for a renewal, offer a large payment if equity is the issue, seek a new loan elsewhere.
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Seek a refinance elsewhere. A balloon 