I am currently in a recorded land contract. The contract was setup for 18 months to pay monthly payments and then at the end of the 18 months a balloon payment for the purchase price is due. We have paid every payment on time and are due to payoff the monthly payments of the contract in feb 2009. I have lost my job and may need to relocate to another area so I do not want to purchase the home in Feb 2009. What legally will happen to me if I simply continue to pay my monthly payment until the contract expires and walk away from the home in Feb of 2009 when the contract expires?

Chances are nothing, especially not if you let the original seller know what's going on and at that time sign something cancelling the contract. They'll probably be thrilled that it will save them the hassle of foreclosing and they get the house back.

Did you make a sizeable down payment? How's the real estate market in your area? Is there any way you could sell the property in order to get your money back out of it?