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Deed in Lieu for land?

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floradelaluna

Junior Member
What is the name of your state (only U.S. law)? GEORGIA

Purchased a tract of land, drew house plans, put current house for sale. Within a couple of months, the housing market crashed and Dh (a subcontractor) was without a huge portion of his work. We took out a home equity loan to survive and put the land back for sale within six months. Nobody is even remotely interested. We have gone back and forth about what to do with the house (and it's two whopping mortgages) and can't come to peace. Went back to look at the land and the area, and the feeling is...there's NO WAY it's going to sell. The area is dead and there are MANY lots and some homes for sale.

In order to avoid Ch. 7, we need to get rid of something. Can you do a Deed in lieu for land and if so, must you owe taxes on the balance? Was recently told about the "debt forgiveness act," and will this apply???
 


floradelaluna

Junior Member
And I'm guessing they probably won't. I have a feeling the market for land is even worse than it is for housing which means we couldn't do a short sale on the land either?
 

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