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J. Warren
J. Warren, Lawyer
Category: Real Estate Law
Satisfied Customers: 2242
Experience:  Experience in residential real estate and commercial leases.
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I have a mortgage on a piece of river front property in

Customer Question

I have a mortgage on a piece of river front property in North Carolina. The house was lost during a hurricane in 2005. I am not allowed to rebuild due to a septic setback issue. I still owe $30,000 but am basically unable to use the property. Do you see any relief options?
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  J. Warren replied 11 months ago.

Hello and welcome to JustAnswer. My name is ***** ***** I am an attorney who will try my very best to help with your situation or get you to someone who can. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site.

I am very sorry you are dealing with this situation. This is a very difficult situation you find yourself in as you already know. There is no legal remedy in this situation unless you had an insurance policy insuring against loss use. The lender may attempt to work out a deal with you to reduce what is owed on the useless property. The last thing the bank wants is for you to walk away from this land and then they have to foreclose and chase you for the balance. In addition, the lender knows by walking away you potentially could file bankruptcy leaving them with useless. There is no legal means to force or compel them to work with you but if they have the impression you are a bankruptcy risk they may work with you.

North Carolina is a non-recourse state which means if a property is foreclose, the lender can not collect on the deficiency between what is owed and what the property sells for. This means if you walk away they are unlikely to pursue you for the balance as they would have to release the security and pursue in court under the terms of the underlying promissory note. Which they could do but does not often happen. You should sit down with a local attorney or financial counselor before making this decision but it is an option that you have. And of course a foreclosure on your credit report will hurt it for several years.

All my best and encouragement. Thank you for allowing me to help you with your questions. I have done my best to provide information which truthfully addresses your question. Please note: If I tell you simply what you wish to hear, this would be unfair to you. I need to be honest with you and sometimes this means providing information that is not optimal. Negative ratings are reserved for experts who are rude or for erroneous information. Please rate me on the quality of my information; do not punish me for my honesty. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time.

Expert:  J. Warren replied 11 months ago.

Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or rated positively. I am simply touching base. Let me know. Thanks!