Posted on: 29th Jul, 2009 10:42 am
i purchased land in 2006. Got a loan for construction and the land. Took 2 years to get all permits, plans, etc. done partially due to alot of City Planning problems. I put in a well, did most of the earth work and such. Finally got the planning done and about 6 months ago the bank told me they where cancelling the construction loan and not renewing it and I must pay them the 1,500 a month. And sorry but we are not doing those kind of loans anymore. I now have to pay 1,500 a month on land that is not worth even close to what I owe thus I cannot just sell the land. I am self employeed with a C Corporation company. Can't seem to get another construction loan to build the home mainly because banks don't do stated income loans which is what I need. My business has gone down almost 50% from 2006 directly due to the economy. I have a primary home for which I also owe just a little bit more than it is worth at the time. If I could build the house and then try and sell my primary I could afford the new mortgage which was only to be $500 more than I am paying now. But I can't do that now and I can't afford the 1,500 now they are having me pay on the loan along with my primary mortage. I need advise. Can they come after my business's assets for which my business needs to continue to operate if I stop paying on the land loan? Can they come after my personal property assets or lein my primary residence? What are my options? I have tried to reason with the bank but they just don't care.
Your lender can come after your other assets if you are unable to pay off the loan. There is a chance that the lender would first foreclose the property and try to sell it off. You will have to pay the deficient amount resulting from the sale of the property. If you can't pay that amount, the lender may place lien on your primary property, your business or can even garnish your wages.
In my opinion, you should speak to your lender and check out whether you can go for a deed in lieu of foreclosure. Though a deed in lieu will effect your credit rating, you won't be liable for the deficient amount.
In my opinion, you should speak to your lender and check out whether you can go for a deed in lieu of foreclosure. Though a deed in lieu will effect your credit rating, you won't be liable for the deficient amount.