What could happen to us if we return a land lot back to the bank?

Question

We bought a land lot to build our "dream retirement home" in Arizona in a planned community. This community had approximately 13 lots of which at least 4 are embroiled in legal woes as the owners just walked away so the developers of this and the one who sold us our lot will not "buy back" the lot. Obviously, with the way the market has gone, and due to circumstances beyond our control, we can no longer afford to even think about building there and cannot afford to keep paying this interest only loan (started at $1700 a month and now at approximately $1300 but still in 18 months nothing has gone off the loan. We have excellent credit and hate to run that but we've become a casualty of the real estate slump. It has wiped out our savings making this payment on something that we could never build on. It would take another loan of over $650,000 to convert this to a construction loan. So, what can they do to us if we just give it back to the bank? Can we be sued? We have real estate for sale (only part owners) but it is not selling either so we're stuck.

Answer 1

Wow!! this is a sad situation anyone could get in easily.  I am glad you not just asked the question, but sharing a value information to the others, especially people that have the same plan and idea you had.  You might save a lot of people who read this to have a second thought on doing it.  The only answer from me will be pray!!! God will blessed you with the way and the wisdom you needed.  In Jesus Christ His Holy Name I will also pray for you.