Upside down on a lot

[Rising Tide]

I'll make this as brief as possible. I purchased a waterfront investment lot for $300,000 in 2006. It was part of a 1031 exchange. It is now worth $90,000. There are plenty of comps and the bank's appraisal was $90,000. The loan balance is $130,000. I am trying to negotiate either a write down or lower interest rate to keep the lot and avoid foreclosure. Can someone tell what I can realistically expect from the bank as far as modifications? Any advice is appreciated.

[Joel Owens]

Did you give a personal guarantee on this loan??

Who originated the loan and did they keep the loan or sell off the paper?

Who owned the loan and where it has been sold too etc. will determine along with servicing guidelines what type of options are available for a possible workout.

Did you cross collateralize any other properties with equity for this loan??

I can't tell you what to expect on a loan workout. When I have worked on these for clients with a short sale or other option each loan is a case by case basis along with the borrower.

It doesn't hurt to try as your position probably couldn't be worse than it is now.

No legal advice.