Short sale and asset protection

I have land in Florida “underwater” and bank loan on this investment for $90,000 ($100,000 in 2006) for 34 years (loan already modified). The land itself is worth $15,000. I am 65 years old this year and at 66 will retired. My only assets will be paid home (in 3 more years) worth $240,000, my Social Security and 401k plan. If I will decide to short sale this land, will any of those assets will be at risk to satisfy bank shortage on the short sale?

Terry Says:  That depends on the terms of the land contract.  You need a Florida attorney to tell you if this loan has any “recourse” to the rest of your assets if you default.  Contact one immediately, because it is insane at your age, stage of life to keep paying on something this upside down.  But separately, contact a real estate agent in the area to confirm that the value is indeed this low.  Florida has been leading in homebuilding, and there may have been a rebound even since last year.   And maybe the realtor could figure out a way to trade the land for a condo nearby — something that you could enjoy in retirement. That’s stretching it a bit — but it’s worth exploring all options. Just don’t get caught in a bad deal again. Thus, the need for an attorney.