Demand Feature on a Second Mortgage Note?

psrobi asked:


Can someone give me some examples of what a demand feature would be on a second mortgage loan?
The mortgage has a check box in the TIL area that states this loan has a demand feature as indicated but I don’t see anything indicated anywhere in the note.
I think a balloon is sometimes confused with a demand feature, there is not a balloon on this one.
I am stumpped.

Connie

Tags: Demand Feature, Mortgage Loan, Mortgage Note

This entry was posted on Thursday, July 9th, 2009 at 6:31 am and is filed under Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “Demand Feature on a Second Mortgage Note?”

1. Silly Mouse Says:
   July 11th, 2009 at 10:27 am

   Patricia

   It could be a couple different things - A demand could be the payoff or it could be when the loan comes due - for example if you have a fixed rate loan 30/15 that would imply that your payment is made like you have 30 years to pay the loan off but really at the 15th year on the day the loan recorded it will come due. at that point you need to refi or pay it off

   Hope that helps !!

   - it would be a lot easier to answer your question if i knew the context of how “demand” was used on the note.

2. Yanswersmonitorsarenazis Says:
   July 14th, 2009 at 7:11 am

   Betty

   Sounds like a balloon note.

   Most typical in a 2nd mortgage would be to set it up with a 30 year payment, but having the remaining balance due in full after 5, 10 or 15 years.

   Since they demand the balance before the payments would actually pay the loan off, that would fit the “demand feature”.