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Ellen, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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I have an empty lot loan, in Florida, with Bank of America.

Resolved Question:

I have an empty lot loan, in Florida, with Bank of America. The purchase price was $300,000. The land is worth around $100,000.   I pay $1,400 per month on a 5yr year fixed interest only loan at 6%. In one year my loan is converting to a monthly adjustable plus principle. I only had to put $15,000 down. I have two other mortgages!! My credit is great and right now I can afford all three mortgages, but I'm thinking about walking from my land loan. If I do this can the bank come after me? Will this only screw up my credit? Bank of America, as of now, won't re-finance!! This feels like a no win situation.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

If you do not pay your mortgage, a lender can foreclose on your property. Florida does not have an anti-deficiency statute. Deficiency judgments resulting from foreclosure can be obtained in Florida.

A lender can take action to collect on a deficiency judgment, including garnishing bank accounts and other assets.

One possible solution is called a "deed in lieu of foreclosure".

This procedure allows you to transfer your property voluntarily to your lender in exchange for forgiveness of your indebtedness.
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