Owner financed Maine land.
This blog post explains what buying and selling land looks like when an owner of it holds the mortgage. Why is finding a property seller willing to hold the paper, to take back a mortgage on the land in Maine you are buying so popular? Lots of reasons really. Maine land is low cost, big and beautiful. First and foremost to that, the country we live in is built on installment sale payments right?
What's one more monthly payment added in? To squeeze out of the household income a little slice for some land in Maine. That sort of thinking happens a lot.
The Maine land is an investment and often used for a cheap vacation destination in the state where the bottom of all the license plates say "Vacationland". Maybe the land buyer wants to farm and live off the bounty of the dirt. To heat with wood, a renewable resource too that is another perk of owning forestry land.
Why else do many 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.
With a house, you usually do need to replace the sticks and bricks. Unless it is your last set of house keys to the home sweet home and 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 don't, the value goes south as the property condition heads down hill. With land, look mom, no structures, nothing to maintain... just let it grow or keep those pasture fields hayed or tilled to grow something.
What's another reason that Maine land is most often owner financed unlike other types of real estate? Banks are not hand stand happy about making land loans.
Those kind of mortgages can not be packaged up pretty and dumped on the secondary market.