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Why would selling the land at a later date discover com personal loans paying off the loan early ,be a bad thing for them. I tend to believe she asked you that because you could take the money and then let the bank have the land back in forclosure. Not suggesting you would in any way. It's just that this whole housing and land fiasco over the last couple of years, left alot of banks with uncompleted houses and building lots from builders and contractors that the banks are having to complete and or sell.
Talking to some LO's with some local banks in the area. Their stories talk about local builder's walking in and literally throwing the keys to 3 or 4 and even 6 uncompleted houses on there desk and leaving (future building lots as well).