When debt is repaid in payments of numerous quantities of a number of colorful slang expression used to spell out various loan structures. The phrase Balloon payment occurs, as if you hold back a lot of the debt and pay only after the contract, knowning that the past payment as well as the total amount refunded is way greater. Debt is inflated like a balloon as a result of compound interest to build a lot of. More info about Balloon payment , see here! Balloon payment notes which might be about to come due might appear to be a great bargain, as you will get a huge payment soon in the event you own the money. But often these refinancing options are trouble in disguise, if the debtor defaults, it is possible to find themselves in foreclosure proceedings, and maybe eligible for only a partial payment around the note. Selling this sort of note is often difficult unless you market it for a discount, especially if the person paying around the mortgage has trouble making their payments promptly.