Why Else Do Many Maine Land Listings So Often Come With A Seller Willing To Offer Owner Financing
Because the seller does not need to replace the land like most do when listing a house. The home for sale might have a mortgage that has a ticking clause in the fine print. The legal clause about if you try to transfer interest in this collateral, or attempt to let someone take over the unassumable loan, an acceleration device is detonated. The bright lights come on, the sirens go off. All the money owed becomes due. Not now but right NOW happens.
What You Should Know If You Self
Seller Financing in Maine: What You Should Know If You Self-Finance the Sale of Residential Real Estate in Maine
With the real estate market slow to recover, buying and selling homes can be a long and drawn out experience. Buyers, hurt by tough financial times, may be slow or unable to acquire home loans from banks in light of poor or diminished credit. Many sellers have seen property languish on the market for months, even years, as they try to recoup value in the limping economy. For both buyers and sellers, seller financing can be an attractive alternative to conventional bank loans to spur sales. From a sellers perspective there have been a few developments in the past few years that you need to know about before making any decisions with regard to financing the sale of property you own. Chief among these considerations is the Safe and Fair Enforcement for Mortgage Licensing Act .
Congress passed the SAFE Act in 2008, directing the states to establish minimum standards and licensing requirements for residential mortgage loan originators. This legislation sought to increase uniformity, improve accountability, combat fraud and enhance consumer protections in light some unscrupulous lending that led to the housing bubble which burst in 2007.
Any further questions or concerns should be directed to a qualified attorney.
S.A.F.E. Mortgage Licensing Act, 12 U.S.C. §§ 5101 5116 .
9-A M.R.S. §§ 13-101 13-120 .
9-A M.R.S. § 13-102.
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Hunters, trappers, preppers and outdoor lovers wanted. This remote timber land for sale with over 4,000 feet of frontage on a wilderness trout stream is listed at can you believe . $300 per acre?
This is the affordable Maine land you have been searching for if you are an individual who can handle an off grid, remote and hard to access location for a real wilderness experience. Survivalists and preppers will be right at home here. The location is the place to handcraft a full scribe log cabin from the timber on site. If you are one who needs town services and conveniences, look elsewhere, this is not your property!
This forest is mixed hardwoods and softwoods with elevations from 400 to 500 feet above sea level. Wytopitlock Stream flows from north to south through the center of the property. The stream forms a travel corridor for deer, bear and moose. A recent timber harvest has left a well distributed stand of timber with new growth attracting game to the site.
Wytopitlock Stream flows out of the lake of the same name and meanders with riffles and runs through this remote forest until it meets the pristine Mattawamkeag River. The stream is a great paddling water in early spring flows with wild brook trout fishing an added bonus.
Do you have what it takes to carve your niche out of the wilderness? If so, call today to see this property.
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What Is Owner Financing
A home is typically the largest single investment that a person ever makes. Because of the hefty price tag, theres usually some type of financing involved, such as a mortgage. One alternative is owner financing, which happens when a buyer finances the purchase directly through the seller, instead of going through a conventional mortgage lender or bank.
What Happens If The Buyer Of The Owner Financed Maine Land Can Not Pay
If a major life event happens that makes continuing payments a hardship or no longer possible, we list and sell the land. If a few years of payments have been paid in, if the buyer has drilled a well, put in a septic system and installed power or built a cabin, the land value with those improvements has gone up to allow a sale. Whats owned has done down with time ticking by each month they did make their payments without a hitch.
If the buyer dies, the estate may stilll want to hang onto the land and divvy it up between the heirs if there is money from other assets to keep that dream up in Maine alive.
When a seller opts to provide owner financing, there are lots of rules in the mortgage and promissory note about what the buyer can and is not allowed to do to the Maine land. As long as there is a mortgage on the land, no cutting of the woods or committing waste can happen without the written permission of the Maine land owner.
Cleaning up blow downs or trimming dead sections of trees is like grooming. It is tree farming to maximize the growth by removing a little over story here to let the little guys down below get a bath of healthy sunlight. To get out of the damp dark lower region of the forest land. Major cutting would have to be overseen by a licensed Maine forester if the seller of the Maine land agrees to such an arrangement. The wood removal is hurting the value of the land if done too heavy or not with good stewardship practives involved.
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With A House You Usually Do Need To Replace The Sticks And Bricks With Another One
Unless it is your last set of house keys to the home sweet home. If you are headed into apartment, assisted living or maybe a nursing home. When you are in the sunset stage of living, monthly owner financing installments trickle in too slowly.
And the seller worries about what if the owner financed home buyer does not keep up his or her end of the bargain and stops paying? Those inheriting the assets if there are any will have to foreclose on the real estate mortgage. Any home owner has to do maintenance on it and when they dont, the value goes south as the property condition heads down hill too. With Maine land, look mom, no structures, nothing to maintain just let the woods grow or keep those pasture fields hayed and tilled to raise something. But lots to construct something on Maine land, building a home.
People Buy Land For Many Reasons
Some for the simple low cost vacation destination to run away from the daily pressure of city living. Trading it in for a short spell of time over a long holiday weekend or yearly week of vacation time in rural Maine. Other land buyers want to build new, start fresh and homestead in Maine.
Or park it on a lake in retirement mode. Some just want a solid investment that can be left to their children later in life or sold fairly quickly if developed in a subdivision for a tidy profit. The dream to live off grid, to set up a simple farmstead and grow what you eat for healthier living is a strong one.
Maine land is low cost, large sized and uncrowded for population to mess up your space.
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Get Help With All Your Site Work
You have purchased your proptery, now what? How do I go about getting a septic system installed, putting in a road or get a tree growth plan in place? Perhaps you might also want a pond or some custom trails on your property. Treeline can also help you with custom timber and firewood to get you through the fall and winter seasons. Treeline is qualified to help you with all of these and much more. Here is an extensive list of all that Treeline can help you with.
Owner Financing Maine Land
- Posted Sunday, Nov 30, 2014
If you are interested in buying Maine land with owner financing find some great land parcels at our listing page. Are you trying to sell your land? Maybe you should try financing your Maine land sale. Why should you consider this option? Because owner financing can help get your land sold faster and earn you more money. Here are a few reasons why and other things you should know.
Most Banks Don’t Offer Land Financing
When a buyer for Maine land is looking for options to finance their purchase they usually start with the bank that holds their checking and savings accounts. In many cases, if the acreage of the parcel is larger than a simple house lot, the lender will not consider the loan. If they do interest rates may be high, or worse, the down payment requirement is not reasonable.
Specialty property types such as Maine timberland investments, hunting/fishing/recreational land, larger waterfront land parcels, farmland and other large acreage properties can be difficult to secure financing for. In Maine there are traditional banks and credit unions that offer attractive terms for land. However, the average buyer looking to purchase land will not know who those lenders are and will often get frustrated with the search. They will naturally look for ways to make the process cheaper or less complicated.
Buyers Prefer Owner Financing
Less Risk than other investments
Things to consider
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Can You Say Up To Forty Percent Down Payment For Maine Land Loans If You Use A Bank Not The Owner
Sure you can. I knew you could. Bank fees come with Maine land loans made in those conference rooms. The ones with the long table closings that happen to the left or right of the big main tile floor high traffic lobby.
With owner financed Maine land, getting a seller to consider doing it is big hurdle. Many dont spit out this much percentage down or monthly interest rates they expect like an accountant might. But the Maine land buyer is the most important part of this buy / sell partnership that is home grown without a bank involved.
To Own Some Property In Maine
Lots of folks have the itch to have their name on the deed to some real estate in Maine.
But banks are a little more rugged when it comes to setting up terms, conditions for a real estate loan in Maine on just land. Why? They can not sell the mortgage. Make some money going in and dump it on the secondary mortgage market.
So, instead of larger down payments, higher interest rates and bank closing costs added on to the fun and games of owning some Maine real estate, just land, consider owner financing.
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Owner Financed Maine Land
No pre-payment penalty to settle up and retire the mortgage early happens in 99.9% of the hundreds and hundreds of owner financed Maine land loans our office set up over the years.
The larger installment annual lump sum balloon payments to pick up the pay down pace, or to just cash out the mortgage early from one big lump sum should be encouraged setting up seller financed land loans. But keep whatever you do as buyer and seller tied strictly to the amortization schedule to know where everyone is in the loan payment schedule.
Northern Maine Owner Financed Land For Sale
Find owner financed land for sale in Northern Maine including unrestricted land, cheap land for tiny homes, and other land for sale by owner with flexible financing. The 8 matching Northern Maine properties for sale have an average property price of $92,713 and price per acre of $25,462.
If you’re selling land nearby, search real estate agents in Northern Maine who can market the sale of your land.
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Bank Mortgage Loans In Maine Are The Norm For Locals Or Many Selling Out Of State Have Cash To Buy In Vacationland
But half down, pay off the rest in two years or less with a short bridge mortgage with the seller or estate. Set up lots of those that are designed to close the gap between buying in Maine now, selling old home down country shortly after that. Maine homes with owner financing, it happens.
207.532.6573 | | MOOERS REALTY 69 North St Houlton ME 04730 USA
When There Is A Group Making The Owner Financed Maine Land Payment You Get More Size For Less Acreage Price
Each buying member does not even feel it when divided up between many who will enjoy the big chunk of private, scenic super sized Maine land acreage.
Plus those same individuals on the hunt, fishing around for land in Maine have skills. To help frame the camp or cabin. To wire up and plumb or shingle or make weather tight the vacation paradise in Maine.
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A Nephew His Mom Who Did Not Need The Money From The Maine Home Sale Were In Charge Of The Estate Sale
Would be making under 1% if the proceeds were put into a savings account. If it was cashed out. And we are only talking a low $20s price bracket Maine housing scenario here folks.
The Maine home buyer could come up with a down payment, avoid the bank moirtgage lending closing costs. The paint peeling surfaces, change a zillion little things to comply with the bank loan all removed from the hassle of the loan underwriting requirements. And maybe he could not get a home loan with all the fine print regulations attached to the dog and pony.
Instead custom make a payment that fit his monthly budget to a tee. Owning the Maine real estate in less than 6 years.
Simple straight forward little business transaction between the parties.
How Does Owner Financing Work
With owner financing , the seller doesnt hand over any money to the buyer as a mortgage lender would. Instead, the seller extends enough credit to the buyer to cover the purchase price of the home, less any down payment. Then, the buyer makes regular payments until the amount is paid in full.
The buyer signs a promissory note to the seller that spells out the terms of the loan, including:
- Interest rate
- Repayment schedule
- Consequences of default
The owner sometimes keeps the title to the house until the buyer pays off the loan.
Even the most sophisticated sellers are unlikely to subject borrowers to the stringent loan approval procedures that traditional lenders use. Still, this doesnt mean that they wont run a credit check. Potential buyers can be turned down if they are a credit risk.
Most owner-financing deals are short term. A typical arrangement is to amortize the loan over 30 years , with a final balloon payment due after only five or 10 years. The idea is that after five or 10 years, the buyer will have enough equity in the home or enough time to improve their financial situation to qualify for a mortgage.
Owner financing can be a good option for buyers and sellers, but there are risks. Heres a look at the pros and cons of owner financing, whether youre a buyer or a seller.
Its a good idea to consult with a qualified real estate attorney who can answer any owner-financing questions and can write the sales contract and promissory note.
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The Bank Will Want To Be Secure With The First Mortgage Position On The Land In Maine Under That Improvement That They Gave You The Money To Build
If they have to yank it back in foreclosure, the financial institution needs to have solid footing on the real estate whatever was added for value and utility on the Maine land.
Banks dont want to loan on structures if they are on leased land unless the lease term is as long or beyond the mortgage loan period.
With building on Maine land that has a seller mortgage purchase plan underway, there is one option to please the bank.
Paved Road Driveway In And Seller Financing On The Maine Land Listing To Help Make It Easy Peasy
And before you know it the Maine land is free and clear. Debt free. Think of the fun exploring the Grand Lake region, the streams and rivers.
The snow sled and ATV four wheeler trails that network, spikder around this over ten acres of Maine land.
Surveyed, over 460′ side road secluded frontage. Build in time, park that travel trailer here for now.
While you first mentally build the cabin or camp that you have partially constructed, rolling around inside your head.
The vacation cabin, camp, retirement home on the Maine land. Between your ears, behind your peepers.
Seems you have been carrying it around inside for quite awhile now.
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Whats Another Reason That Maine Land Is Most Often Owner Financed Unlike Other Types Of Real Estate Banks Are Not Hand Stand Happy About Making Maine Land Loans
Those kind of mortgages can not be packaged up neat and pretty to dump on the secondary market. Banks making Maine land loans dont have the same luxury of selling off and getting rid of the discounted mortgage paper to investors like they do daily with a homes promissory note. You know, the one you signed at the mortgage your life away long tedious real estate closing that cramped your hand from the tall stack of paperwork. The real estate closing where you learn your final payment, the mortgage burning party is a fast forward to fifteen, twenty, thirty or more years from now.
Owner financed Maine land is often bought by a group of sports men, family members who like to hang out with each other up tah camp in Maine.
When the resources are pooled, that monthly owner financing payment on the Maine land is a piece of cake to make. To use collectively all year round for vacations when each can fit them in to head to Vacationland. The group puts their skill sets together to create a vacation property to enjoy all that Maine offers year round.