Buying Foreclosed Farmland- a checklist

Editors note: Many beekeepers in rural areas expand their operation by placing their hives in orchards or farms owned by friendly neighborhood owners. This beneficial arrangement provides pollination for the farmer, and space for the bees. However, many in cities dream of owning a small gentleman’s farm, so we include this information here for the interested.

Buying Foreclosed Farmlands – Checklist

Buying Foreclosed Farmlands – Checklist

Many realtors have revealed that the current ecGarreson Publishing Facilityonomy and real estate market have created a prime opportunity for investors to buy foreclosed farmland. Residential foreclosures can be a nightmare for the potential investor. They may have to deal with awful property conditions, fake landlords, and short sales that leave them with migraines. These negatives have created more investors who are interested in purchasing foreclosed farmlands. The process of obtaining this land can be quite easy if the buyer is prepared.

  1. Search online for foreclosed farmland. A buyer should search based on the county or state in which they are interested.
  2. Find a real estate agent. Many real estate agents are not well versed when it comes to foreclosed farmlands. An agent that deals exclusively with these types of sales is the most beneficial to the buyer.
  3. Obtain the proper paperwork. Before a buyer expresses interest to the lender about purchasing the land, some legwork needs to be done. There are forms that must be completed that are different from foreclosed residential properties. The buyer may have to have a perk test completed. This is a test that will determine if the property is suitable for a septic tank to be placed in the soil.
  4. Have a flood inspection completed. All farmland must be inspected so the buyer will know if the property is prone to flooding.
  5. Determine if crop insurance is needed. If an investor is planning to use the land to plant crops, it would be wise to purchase insurance in case of damage. An investor should know that if insurance is purchased the USDA may want to know more about the foreclosed land.
  6. Be aware of the location of the farmland. Land that is close to mountains is very expensive. Land that is located near major cities is also expensive. Banks that have foreclosed farmlands located in undesirable locations will give the investor the best value. These are properties that are hard for the bank to sell and they would be willing to offer a bargain to the buyer.
  7. Decide foe what the land will be used. Some investors may use the land for farming or they may decide to rent the land in order to receive a passive monthly income.
  8. Get approved for financing. Before a buyer makes contact with the lender they should have their financing in place. Banks like quick, short sales and they like to close deals as fast as possible.
  9. Contact the lender that owns the property. The buyer should make initial contact with the lender by phone or email and express interest in buying the property. The buyer may have to wait for the lender to respond. If there has not been a response within 30 days, the buyer should resend the inquiry.
  10. Negotiate a deal. Once the bank has responded to the inquiry, the buyer should be prepared to show they are serious about buying the land. Show the lender all of the paperwork necessary including insurance and financing information.
  11. Close the deal and settlement and enjoy the land.

By Susan Redfield, content manager and real estate agent at USREOProperties.com, the best reo homes online listings database

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