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Familyguy · Joined: 14 Nov 2009 Posts: 1 1.44 Dollars($)

Investment land in South Carolina (owe 225K and even 30K short sales aren't selling)! Have primary residence in Virginia which will be paid off in 8 years, have lots of equity in it.
Continuing to pay on the investment land is futile as I can only pay that mortgage with my primary home HELOC and the land won't ever be worth half of what we owe in it even if we wait out our lifetimes.
We are current on our investment land payments and bank will not discuss with us any alternatives such as DIL or even agree to refinance since the value of the land is sooo low. (Mortgage is interest only and will balloon in a year)
If we just walk away from the investment land mortgage, what are the implications to our primary home? I suppose I can live with the credit hit to our current 800 credit score, but I can't live with losing our home or the equity we've worked so hard to build.

raymond · Posted: Sun Nov 15, 2009 8:18 am Post subject:

>>It'd be wise for you to review your options with a Bankruptcy Attorney.

Niicss · Posted: Mon Nov 16, 2009 2:35 am Post subject:

If you walk away from the property, the lender would foreclose the land which would remain as a negative mark in your credit report for the next 7 years. It will also lower your credit score by 250 points. Also, you should note that the lender would sue you for the deficient amount resulting from the sale of the property. If you cannot pay it off, the lender may charge off the loan to a collection agency.

raymond · Posted: Mon Nov 16, 2009 7:30 am Post subject:

>>the lender would foreclose the land which would remain as a negative mark in your credit report for the next 7 years.

10 years, not 7. Foreclosures and chapter 7's remain on credit reports for 10 years.

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Do I have to file Chapter 13 to save my primary home from a bad investment?