We have a couple of land properties in Florida and one in North Carolina that plummeted in value by almost 85% due to the realestate market. These were purchases made for investment purposes only and not for home construction. We just can not afford to pay for these anymore, especially when they are worth nothing. Now if we foreclose on these properties can our the bank come after our main residence is in Illinois?

Hello Cin:

Ultimately, yes. You ARE responsible for the note, and you'll be sued for the difference between what the bank sells these properties for, and what you owe.

Once that lawsuit has been won by the bank, they'll come after ANY assets you have.

If you can, I'd see if I could arrange a short sale with the bank. They SHOULD be amenable to it.

If not, bankruptcy will allow you to keep your house.

excon