My balloon is coming due and my bank won't renew. What now?

Question

Turnrow Capital · Accepted Answer

You have three moves: refinance with a different lender, sell before maturity, or negotiate a short extension while you do one of the first two. A private lender like Turnrow can issue a written term sheet in 24–48 hours and close in 2–4 weeks — usually fast enough to beat a maturity date if you start now.

First, get the facts in writing from your current lender: exact payoff amount, per-diem interest, maturity date, and whether they will grant a 60–90 day extension for a fee. Banks that decline renewals will often extend briefly rather than start a foreclosure — it costs them less. Ask directly.

Second, run the refinance track immediately. A bank declining to renew usually reflects the bank's balance sheet or regulator pressure, not your property. Private lenders underwriting the asset itself can move in weeks, not months, because they are not waiting on tax returns and committee calendars. At or below 70% LTV with a clean title, you are financeable.

Third, price your sale fallback honestly. If the property would clear your payoff with room to spare at a 90-day sale price, you are negotiating from strength. Never let a maturity date arrive with no signed path — a matured, unpaid note gives your lender every option and you none.