I have a balloon payment of $56K due in December 2009. I want to borrow $30K right now and pay interest for a term of thirty months with an "assigned" balloon due to the lender in December 2009. I have been to several local banks and none of them have such a product.
I wish to clear all of my credit card debt as the interest I will be paying on them in the thirty month term is much larger than the interest I will be paying on the loan I get. Where would be the best place for me to secure this type of loan?
I assume this means you have a balloon payment due to you in December 2009, and you want that to secure a balloon loan to you. The funds from your loan would be used to pay credit cards now.
Few banks lend to individuals on notes receivable they have, so it would be difficult, though not impossible, for you to borrow on your note receivable. The problem is that the bank needs to see how capable you are of repaying the loan, how capable your borrower is of paying you, and what will happen if you are not paid. What other assets do you have that will allow you to make the balloon payment?
Credit arrangements like this are reserved for commercial borrowers and those with high net worths who could easily repay the balloon even if they don't get paid by their borrowers. Speak with banks with whom you have a relationship, or those wanting your business.
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I assume this means you have a balloon payment due to you in December 2009, and you want that to secure a balloon loan to you. The funds from your loan would be used to pay credit cards now.