Considering loan default

Boy are we in a pickle. We purchased a 24 acre tract of land overlooking a golf course with the intent to sell it off in smaller parcels. We have been paying interest only to the bank since we purchased the property about six months ago, never dreaming it would take this long to sell some of it off. As luck would have it, I also lost my job! We have no prospective buyers on the land and while I have secured another job, the interest only payments are eating our lunch! We are needing to relocate to another city because of my new job, but can't until we get out from under this money pit parcel of land! We are considering simply letting the land go back to the bank. What is the worst that could happen if we do that? And, does the bank have options to help prevent us from defaulting on this loan? The bank took a 2nd mortage on a seperate tract of land we own as additional collateral on the tract that is beginning to get us into trouble. Would they claim that too? Our credit score is currently +700, so I hate to think about what this could potentially do to the outstanding credit I have worked so hard for.

[able1]

Could you sell at a some loss and arrange payments on what is remaining and and due?

Yes, if we had any prospective buyers. As of now, none. We have posted the land on the internet, in the newspaper classifieds, 1/2 page full color ad in a monthly real estate magazine, pitched the property to our local builders' association, and have contacted adjoining property owners, with no interest. Have considered an auction, but auction company wants us to pay $5,000 in upfront costs and wants to hold an absolute auction where the land would sell regardless of price. We just can't take the chance that it would sell for some ridiculously low price, still leaving us holding a majority of the debt.

[annjd]

The bank could take it, sell and then even try to sue for any loss they may have. But there is not too much else they can do.

Promoting a sale does seem like a good idea--or maybe the bank will also stretch out payments for a period...