I've been in the business for almost 20 years (carpenter, superintendent, etc) but just got my general contractors license in '06. I went in business with a partner who had the financial backing I needed (I thought) and started my first spec house just before the market crashed. Of course no bank would give us a construction loan unless we both personally guaranteed it, so we did. After the crash, homes are sitting all around us. Values have fallen. We have not been able to sell it ($300,000 - huge discount, good price for the area), but did a lease purchase for a year. Now the lease is up and the tenants are leaving. My partner has no money left. I have enough equity in my personal home to make the payments for about a year, but of course don't want to go that route. We are about to go into default.
What should I expect next? And what would you do in this situation?