We have property that we purchased 4 years ago that we still $100,000 on and the property has been devalued to $65,000. We are not able to sell it but would like to default on the loan. What is the worse that can happen? We used our current residence as collateral to purchase the property.

Quote:

---

Originally Posted by Jeff Miller

We have property that we purchased 4 years ago that we still $100,000 on and the property has been devalued to $65,000. We are not able to sell it but would like to default on the loan. what is the worse that can happen? We used our current residence as collateral to purchase the property.

---

The worst that could happen?

Let me see. The sun could go nova and all of us could die? And there might be no life after death?

Reaistically, with respect to your particular situation?

The bank could foreclose, get a deficiency judgment against you, it could be sold for $1.00 and the bank could get a deficiency judgment for $99,999, and foreclose on your current residence as well.

Let me see, they foreclose and your 100,000 balance goes up to about 110,000 with costs. They sell the property and get maybe 20,000 ** at court house auctions most in my area are gong for 10 to 20 cents on the dollar.

So you end up still owing 80,000 on a home you no longer own. And you have to pay it, or they will foreclose on your current home also.