Legal Question in Real Estate Law in Arizona

I own a 6 acre parcal of land. i bought it in 2005, I paid 60,000 down and i still owe 90,000. I made payment to m&I bank at 7.7% interest only . I am current on my payment. The value of the land have drop alot , The bank would not take a deed in lieu of a foreclosure, I want to walk away from the loan. What is my option?


Asked on 3/29/10, 11:17 am

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

You can attempt to make a short sale of the property, where you sell the property for less than is owed to the lender, with the lender's permission. If you walk away or make a short sale, you will have a negative on your credit report, because you will have defaulted on the payments when due. There will less of a negative credit affect with the short sale. I believe that M&I is a troubled bank (may be taken over by the FDIC) so they will not offer you anything until you fail to make a payment or two, then you might get some cooperation. The bank can't stop you from walking away, defaulting on the note.

Read more
Answered on 4/03/10, 12:31 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Arizona