Please help! Can a construction loan be foreclosed?

[catherine413]

What is the name of your state? California

Hello,

I've been trying to find information that relates to my situation but no luck, then I came across this website. Hopefully someone out there can help me. A year ago, my boyfriend and I built a house in FL and the builder take the construction loan out of our names. Now, we do not have to make any payments during the contruction proccess. The house should be complete in weeks and we need to obtain the loan. We will not able to afford the monthly payments and I don't think that we will be qualify for the loan also because we own another home in FL that is currently being for sale. Since we have to make payment on that home already, we will not be able to afford another mortgage. I like to add that when we started building the 2 houses, my boyfriend and I were both working. At this time, however, only my boyfriend is working. I have to take care of my dad who's recently diagnose with nasopharyngeal cancer, therefore, I haven't been able to work. My question is, if we do not qualify for the loan or what if we inform the builder that we will not take the house what will happen? Can that be consider foreclosure? I read somethings about Deed In Lieu, will that be applied in this situation? And how will that affect my credit. Also, will this affect my other assets or properties? Thank you so much for taking your time to assist me in this situation.

[seniorjudge]

I will answer one of your questions: If you want to give the lender a deed in lieu of foreclosure, they may want to do that since it will save them lots of time, trouble, and money.

Negotiate with them.

[catherine413]

Thank you seniorjudge!