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Collateral

Posted on: 10th Nov, 2009 11:03 am
We bought a property 2yrs ago. It was on a construction loan
with 56 acres as collateral. We had another home in MD which
we were unable to sell. We then let the home go, and filed a
Chapter 13 to save our present home. Now the judge has ruled
in favor of Wells Fargo. ? If Wells Fargo forecloses, do they keep
the land also? Note- We make enough to pay the mortage.

Thanks,
bjsflowers
If the land is collateral on the loan, then they would have the right to sell it in order to recover their principal - that's the whole point of having security I believe.

If you can pay the mortgage, thats probably your best bet.
Posted on: 10th Nov, 2009 12:59 pm
Please clarify the question.

Which home did you let go, the home in MD or the new construction and the land.

Which home is Wells foreclosing on, MD or the land???
Posted on: 10th Nov, 2009 01:00 pm
Hi John,
We let go of the home in MD. The collateral was on the land in
TN which Wells Fargo is foreclosing.
Thanks, for answering.
Posted on: 10th Nov, 2009 06:29 pm
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