Can You Sell Your Bare Land When You Owe Money On It?

Can You Sell Your Bare Land When You Owe Money On It?
Hi, I’m Beth with TB Properties Buys Land, and today we’re going to talk about selling your rural vacant land, your residential or recreational land, that’s 10 plus acres. The question is: can you sell your vacant land if you still owe money on it? So if you think about this, most people who sell their homes still have a mortgage on it, and they’re still able to sell their home, right?

In the same way, if you’ve got rural vacant land where you’ve got a mortgage on it, or maybe you have a lien against that property, there are ways that you can sell your land. First of all, if you’re talking to a land investor, like TB Properties Buys Land, please make sure that you let us know right away that you owe money on the property or that you have a lien against the property.

First of all, we will find out. There’s ways to see that. Once we send the contract over to the title company, those are some of the first things that they’re going to search for. So if you owe money, please let us know so that we can factor that in to the discussion and to the offer to buy your property. But just the same way, when it comes to funding the deal, we always work through a title company, which means that we, as the buyer, are going to send our certified funds to the title company.

Once the paperwork is done, on both sides, the title company will fund you as a seller. When it comes to funding you if you still owe money on the property, the title company is first going to pay off any loans or any mortgages against that property. What this means is that we send our money over, and from those proceeds, the title company will pay off, say your mortgage lender or homeowner’s association or a property owner’s association that’s due money. They will typically pay that from the proceeds of your sale before sending you your proceeds from the sale of the property. So that’s how easily it is done.

We simply ask that you notify us in advance if you still owe money on the property, be it a mortgage, back taxes, lien or HOA/POA, but as discussed, you can absolutely sell your property and still owe money on it. If you’ve got rural vacant land, that’s 10 plus acres, be it residential, recreational, agricultural, or however it’s zoned, we’re interested in offering you a price on it. We like to give you a fair price. We send you over a purchase agreement that is simple and only one page. We cover all closing costs: those include the costs of covering the title company, which are called escrow fees for the buyer and the seller. We also pay for title insurance so that your title is insured. We pay the recording fees to the county, any excise taxes or transfer taxes that are involved, we pay for all of that so that the dollar value on our purchase agreement to you is what you’re going to get, unless, of course that you owe some money on the property and then those get paid off first. Then you receive the rest of that. We always close through a title company for safety of everybody, and we try to make it easy.

Oftentimes, we can close as fast as three to four weeks. If you’ve got payoffs, it might take a little bit longer, but we’re typically pretty quick. You’re not having to wait for your property to sell on the market, especially in these winter months that are approaching. If you are interested in selling your bare land, please give us a shout. We’re happy to work with you and to answer any questions that you might have. Thanks again for listening.
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