I had signed a contract and purchased some land in Texas, however didn't forsee that the monthly costs would kill me. I'm basically paying a mortgage payment for the land I aquired. Anyways my question is this. If I stop paying for the land how will that affect me? Will it affect my credit score b/c i'm looking to buy a new home soon and I wouldn't want it to prevent me from getting a good deal. If that's not a good option does anyone have any advice (legal) as to how to get around this mess? all advice is appreciated. thanks!
Why not post the land property here? If your just wanting to get out of it totally and eat your losses maybe someone here might be interested in investing on that property. ( Meaning pick up the payments )
Sell it, assign it, don't stop the payments on it. If you stop making payments for it and default, it'll set you up for some trouble when you are looking to finance your future home. I'm a realtor in Texas by the way.
Are you personally liable for this note (i.e, recourse)? If so the mortgage holder could sue you for the balance...basically this would go to foreclosure. If it sells for $100 at foreclosure and you are owed 200, the lender could go after your for the $100 they lost.
I'm new at all this as you can see, but what do you mean by default? What kind of trouble would I be expecting? I have a broker by the way but it doesn't look like she's doing much since I signed up with her last year. By the way if anyone is interested, the land I purchased are actually lots in a residential are called the Villages at Lone Oak. I purchased the lots nearly 2 years ago. One for $49,000 and the other for around $29,000. The first is 12,657 sq ft while the smaller is 11,500 sq ft. The biggest selling point of the "lots" is that they are constructing a golf course in the middle of the community. The architect of the golf course (Jeffrey D. Brauer) seems to have an incredible portfolio and people around the golf circles have heard of him. ( I don't play golf so I don't really know him) Anyways, here's an article from a golf website regarding the construction. Golf Course in Villages at Lone Oak If yall have heard of Wildwood Shores in Lake Conroe these are from the same builders. Apparently I heard that their lots sold out fast and their in full swing I guess. They don't have the golf course however. Here's a look at their website by the way. Wildwood Shores at Lake Conroe
What did you sign up with the broker for? Help to look for a house?You're in Arlington right? Default is basically not following through with what you agreed upon with your lender. You'll be in default for not making payments. It'll basically be a foreclosure like dream sequence said. It'll could effect you with getting a mortgage to finance your home that you'll buy in the future.Lenders will become wary ( is that the right word) of the foreclosure. You'll most likely see higher rates, etc. The best thing I can tell you is to look at the contract with the mortgage company for the land. See if it's assignable, and find someone to take over for you.If not, try your hardest to sell it. If you need anymore advice just let me know.
Certainly. I signed with a broker to sell the land. She hasn't done much as far as informing me or updating me. Anways. I'll keep in contact. thanks.
