how likely is Bank of America to seek a deficiency judgment on a foreclosure of investment property?

Question

We own a vacant lot we intended to build on, that we bought at the height of the market a few years ago, and now it's worth about 1/3 of what we owe on it.  We can't get a loan to build on it, because there is so much negative equity in the property, and we can't sell it, because we'd have to bring $80-k to closing at today's prices.

It's financed by Bank of America. If we make a business decision to walk away from this property and let the bank foreclose on it, what is the likelihood that they will seek a deficiency judgment?  We live in SC, where dj's are allowed...  I've heard that dj's are more likely on investment properties than on primary homes, and that each bank has it's own customs and practices.  

Help?

acermill · Accepted Answer

Bank of America is very likely to seek a deficiency judgment on any property on which it determines that the borrower has sufficient asset value to pay such a deficiency judgment.

? · Answer

Of course they will you will receive a 1099 for the balance of your loan. BofA is aggressive

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Anonymous · Answer

I give it a 90%.    Your only hope is that you did not steal enough money from them to make pursuing it worth their time.

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how likely is Bank of America to seek a deficiency judgment on a foreclosure of investment property?

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