Klamath Falls Land

[carrierita]

Oregon, I have some land in Oregon that I am selling, I have someone who wants it with a down payment and then payments, But he wants to build on it right away, should I allow this? If I do and he defaults is he then a squatter and I will be out the land or it will coast a lot to get him off?

 

[LdiJ]

Oregon, I have some land in Oregon that I am selling, I have someone who wants it with a down payment and then payments, But he wants to build on it right away, should I allow this? If I do and he defaults is he then a squatter and I will be out the land or it will coast a lot to get him off?

Unless the land is unlikely to attract another buyer, I would attempt to find another buyer if I were in your shoes.

 

[FarmerJ]

You can talk to your attorney to learn what the procedure is in Oregon to terminate/foreclose on a contract for deed when the buyer defaults & If you have a attorney write up for you a contract for deed and its properly recorded this should not be a issue ( unless this buyer is going to build and pay cash then I cant see many lenders giving to him a construction loan if he cannot use the land as collateral unless he has the resources to use something else as collateral. ( if you did sell via contract for deed then you could even I suppose have it say they cannot build or make any changes to the land if its heavily wooded like say limiting via a percentage the number of trees that can be cut down for the purpose of building ( so if it had alot of trees on it a buyer would be breaching the contract if they had a timber firm come in and take it all , but this is the kind of stuff you can discuss with the attorney who can write your contract up.

 

[John Se]

I bought land with the seller carrying back the mortgage (Arizona), it worked well and is really the most likely way to be able to sell it.

A. It was not on a "contract for Deed" As you dont get title with a contract for deed, but the seller usually can foreclose much quicker.

B. The seller should get a very substantial (at least 20%) down payment. Interest should be at least 2 points greater than current long term financing available on a conventional house, maybe 6.5 % these days.

C. If you get a deal like this and the land is payed of in 7-10 years with interest and the buyer begins putting more of thier own money into the land via building and infrastructure whats to lose? Worst case is you have the cash down payment, and get their improvements and the land all back to you can sell it again. Of course what some people think are improvements others consider garbage.

If the buyer defaults foreclosure will follow the normal process in your state which may be 5 months to eventually get a judgement. But once again if they have alot of skin in the game via a large down payment and their own money in building and infrastructure then they are less likely to default.

Make sure it is all done through a title company at a minimum. And study up for yourself on foreclosures through contract for deed and normal mortgage holder foreclosure