ReFinancing a Land Loan coming due

[Ethics05]

What is the name of your state (only U.S. law)? Florida

Question: My son has to refinance a land loan with the balloon coming due in 12 months. Loan balance at that time = $58,000.

In the meantime properties in Cape Coral, FL have been reassessed and the new tax assessment for this property = $15,000. This past year it was $45,000. I'm sure it would appraise out far below what he bought the land for.

As we all know this has been a common occurence in Florida.

SunTrust (the current mortgage carrier) appears to be unwilling to work with him and extend the loan. He has excellent credit, is a Lee County Sheriff Deputy, is a veteran, and has made all payments. No problem there.

What he is running into in all cases (numerous) thus far is that no one wants to refinance the loan.

Does anyone have any options or advice in this situation? I'm sure this is not new and many are running into the same kind of thing.

Thanks very much!

[dmiller12]

There's not much that can be done in terms of using the land as collateral if the value has dropped that much. For $58,000 he may be able to obtain a personal, unsecured loan or line-of-credit for some or all. Does he have any other assets he can use as collateral - cars, trucks, motorcycles, boats, retirement assets. etc...

If he wants to keep the land, he'll have to get creative.

When push to comes to shove, Suntrust may not be that eager to forclose when they realize there's no value there if your son continues making timely payments. I wouldn't test them on this though if your intent is to keep the land.