Legal Question in Real Estate Law in Texas

Refinance & deed of trust

State: Texas

We have a 1st loan for $61000 that is on a 5/15 balloon payment. My parents own a construction company and loaned us $107,000 to add onto our home starting July 28, 2008. We finished the house January 31, 2009 and have been trying to refinance. The problem is my parents company is very likely going to bankrupt and they are wanting to call the loan due, even though they gave us until July 28, 2010 to refinance. The bank is telling us it could be 60 to 90 days before we even get to closing. What can we do?


Asked on 3/11/09, 10:07 am

1 Answer from Attorneys
David Leon David L. Leon, P.C.

Re: Refinance & deed of trust

You also need to double check the note and deed of trust to see how they can accelerate or "call" the note in advance. If they can't call or accelerate, they are always free to sell the note for cash to a third party that buys commercial paper. In the meantime, keep hunting for other finance companies that can close quicker.

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Answered on 3/15/09, 5:20 pm


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