I purchased a lot in Dec05', and have not been given a building permit because the road going up to the lot was graded without a permit (the seller disclosed: the seller does not guarantee the road- their agent explained something totally different from what it really was) In order to get the permit, I must improve the road (very costly neighboring lot owners- will not help).
*The construction loan expired in Dec 06', and the lender asked me to re-finance the loan.
* Another mortage loan marked my credit with a 30 days past due in October- I am disputing.
* Obtaining a re-fi has been difficult due to this credit issue.
* The originall lender has given me two months to resolve the issue, before they take action (don't know what).
I have two other properties (one with little equity and one free and clear valued at 700K- I tried to use it to re-fi, credit mark is the issue).
What happens if I don't pay- I am tired of this problem! Will they go after my other properties?
2007-01-17 05:13:18 · 6 answers · asked by chavi 2 in Business & Finance ➔ Renting & Real Estate
Considering my situation, what options do I have if I can't get a loan?
2007-01-17 05:56:10 · update #1
I will be be listing the property this week, but it will take months to sell.
2007-01-17 05:57:27 · update #2
Yes they will go after your other properties.
Think about what you are doing, you are punishing your lending institution by not paying, this is not their fault. It is your responsibility to pay them. Did you have an inspection before purchase? Did you have a lawyer review the contract and documents before you signed them? This is basic stuff. In order to save yourself and your credit I would suggest selling the property. Otherwise you should be prepared to file BK, having a foreclosure will realistically stop you from getting investment loans in the future.
2007-01-17 05:27:07 · answer #1 · answered by J O 3 · 0⤊ 0⤋
Most loans are recourse loans so the bank has two other options of repayment: 1) Liquidate the collateral i.e. forcible sale thru foreclousre and/or 2) Recourse to the borrower/guarantor i.e. come after other assets owned by borrower/guarantor.....
2007-01-17 13:17:53 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
They will put the lot in foreclosure and "repossess" the lot.
If you're worried about your credit you'd be better off just paying it cause a foreclosure will hurt your credit.
2007-01-17 13:21:55 · answer #3 · answered by photogrl262000 5 · 0⤊ 0⤋
They will just sell it to pay off the loan.
2007-01-17 13:17:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They will recover the loss anyway that they can so be prepared. If it goes on your credit it will haunt you for years to come.
2007-01-17 13:21:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, they will try and recover any way they can.
2007-01-17 13:17:15 · answer #6 · answered by crossbones668 4 · 0⤊ 0⤋