RV living, Dodd Frank, Seller Financing, and Balloon Payments

[Stephanie Southerland]

Hello all,

I am an agent, and have written up non consumer and consumer  seller financed deals. I am working on one where the buyer/borrower would reside in his RV on the property, tear down the old house that had a fire, and fix up an apartment that is on the property. It's on 5 acres. He wants to do a balloon payment and pay it off in two years or less. I am currently waiting on a call from my broker for her input, but I thought I would put this out there in case anyone has any insight. If our buyer lives in his RV on the property, is that still considered "owner occupied" and would then not be allowed to promise the seller a balloon payment? Buyer would like to keep payments around a certain amount, so amortizing it for a short period of time is not going to work, but the seller doesn't want to be holding the note for 30 years. I suppose she could find a note buyer once it is seasoned, but she may not know how to do all of that, and she was just hosed royally by some buyers who did make a down, but never made one payment after that and she had to foreclose and take the property back.  Any suggestions?