How can we refinace our land loan to lower our monthly payments?

Question

I have a loan on some land that is on a 15-year term with a 5-year maturation date. By that maturation date we are supposed to have rolled the land loan over into a construction loan. Life happens and now we know we will never build on the property. We cannot afford to pay on the land for much longer, and it won't sell because banks aren't loaning much on land right now. Do we have any options other than something that will kill our (currently very good) credit score?

Answer 1

Best Answer - Chosen by Voters

It depends on the bank really. If they are small enough that you can talk to a real person with a name and everything you might get it done. First of all if you've paid on it for 5 years what you owe is less than it started and you'd be refinancing into another 15 year term with a 5 year balloon so that might make the payments somewhat less. When it comes right down to it the bank doesn't want it anyway.

Answer 2

Banks aren't loaning as you say so refinancing is impossible. Maybe you could sell it to a nonproft or conservation group?