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: If you can't refinance when the balloon payment is due, you could lose the property and all the equity you've paid in. : You are on the hook if the buyer fails to maintain the property or mismanages the business, which could decrease the property's value if you have to take it back. 5. Implementation Steps : Many seller-financed deals are short-term (e.g., 5 years). At the end of the term, a "balloon payment" for the remaining balance is due, usually requiring the buyer to refinance with a bank at that point. Â
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