Posted on: 31st Oct, 2008 05:47 pm
I and two friends bought a piece of land in a high end golf community. The plan was to buid a home and sell it for a profit. We had enough funds to move the project in the construction phase and then rely on the construction loan. Due to the credit crisis it was imposible to get any money for the construction and we cannot pay the mortgage for the land because one of us lost his income. We are already two payments behind. What is the worst that can happen?
The bank will foreclose on your loan, take the land back, ding your credit with a foreclosure, and depending on the laws of your state, if they can't sell the land for as much as is owed on the mortgage, might be able to file a deficiency judgment against you for the difference.
Hi lclc!
Foreclosure is the worst thing that can happen. The lender will give all the borrowers a foreclosure notice and then sell the property to recover the debts. In case, there is a deficiency, the lender will ask you all to pay that amount. If you cannot, then the lender may place liens on other properties that you own or can also garnish your wages.
You can try for a short sale or a deed in lieu foreclosure if you think paying the mortgage debts will be impossible for you all.
Thanks.
Foreclosure is the worst thing that can happen. The lender will give all the borrowers a foreclosure notice and then sell the property to recover the debts. In case, there is a deficiency, the lender will ask you all to pay that amount. If you cannot, then the lender may place liens on other properties that you own or can also garnish your wages.
You can try for a short sale or a deed in lieu foreclosure if you think paying the mortgage debts will be impossible for you all.
Thanks.
