Last year, a lady called me and said she sold a home to someone who worked for her. I asked what the terms were. She said the down payment was 0%, the interest rate was 0%, the monthly payment was “0”, and a balloon payment was due in 3 years. The note was about 6 months old. When I asked why she agreed to these terms, the lady said she wanted to “help” this person. Before I could ask any other questions, she believed her buyer would not be able to pay the balloon payment, and wanted to confirm with me that she could foreclose if that happened. I said “Yes”, she thanked me, and hung up.
This was a real conversation!