We bought some land a few years back and mortgaged through the bank for several years we have been struggling to stay afloat and pay the mortgage since we are now a one income household. We understand our credit will take a hit, but the mortgage company refuses to do a deed in lieu. We will most likely foreclose on the land, but can the mortgage company sue us (judegment) because we do not have the money to pay the loan? Can we ever recover credit wise?
If you miss too many mortgage payments, your lender can start foreclosure proceedings to take ownership of the property, but it has to follow your state's laws.