Legal Question in Real Estate Law in Georgia

We have a building lot in a Helen, Georgia subdivision that we have not built on. It has been on the market for 3 years, but has not sold. I have recently become unemployed and between the mortgage payment of $375 a month and the property owners association fees of $250 a month for this property, we will very soon not be able to make the payments. The loan was written (somehow) as a commercial loan and it has never appeared on our credit reports, which are highly scored, most recently from Experian at 882.

If we let this property go into foreclosure, will it keep us from buying a house in the same area at a later date and ruin our credit scores? Should we tell the bank and the POA that we expect to stop making payments within the next month or 2, or just stop paying? We do not want to keep the lots and we have reduced the price repeatedly to try to break even. However, nothing in this area is selling and we have not had any offers.

We also own 2 houses in Florida, one with a mortgage and one paid off. We own no other property in Georgia, except for a week of Timeshare.

Thanks


Asked on 9/20/09, 4:16 pm

1 Answer from Attorneys
Charles W. Field Charles W. Field, Attorney at Law

Well, since the loan hasn't shown up so far, I don't know why it would in the event of a foreclosure. However, you need to talk to someone in the credit industry who will be discreet in checking this out for you, such as your banker.

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Answered on 9/25/09, 4:56 pm


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