Our originally financed lot loan with Wachovia was assumed by Wells Fargo in the last year. I had been calling Wachovia asking what I could do knowing that the balloon payment was due in Sept 2010 and they wouldn't talk with me until 90 days before maturity. So...here we are! We were part of an investment group in South Carolina (53 lot owners) and the developer never began the project in 2007 when the lots were purchased and is now claiming bankruptcy (which is crap since the company still develops under other names). We paid $220,000 for our lot and it is now worth $4,000 according to Wells Fargo's recent appraisal.
We offered them $15,000 to walk away and were denied. They are now discussing putting us into a P/I loan which will double our mortgage payment AND requiring $15,000 in cash!?!
Given that they are not giving lot loans anymore, we find ourselves dealing with the HELOC division and because this was an investment opportunity for us, they aren't showing any flexibility. They basically told my husband that they would not negotiate and that we owed them $197,000.
I would beg and borrow to get them the cash if they will let us walk away. Anyone know of a good ratio or how to get them to agree? With this economy and given that we are BOTH small business owners with no dependable salaries, we can't promise another payment for 15 or 30 years on a lot that will never come close to coming back due to the negligence of this developer. It doesn't make sense.
Any immediate advice would be very helpful. thx