Posted on: 02nd Mar, 2009 07:54 am
I own just over 1 acre of vacant land that is zoned commercial, I have a deed that denotes my ownership in that portion and the land, the land is paid in full with no liens.
The only complication is, the property is over 7 acres total and I own a share of it, the rest is divided among 2 other people so no particular piece of the land is mine it's all shared and vice versa.
I want to get a loan and use my portion as collateral. Where and how do I get started in seeing if it's possible? I noticed many lenders don't list "land" as collateral.
Would I have to get approval from the other share holders if I wanted to use my portion as collateral, even though the deed is in my name for the portion owned?
My piece of land was assessed a couple of years ago to be worth around $150K and I want to use the funds to pay down debts, I have a credit score of 676 currently and looking to borrow $30-40K.
Thanks!
The only complication is, the property is over 7 acres total and I own a share of it, the rest is divided among 2 other people so no particular piece of the land is mine it's all shared and vice versa.
I want to get a loan and use my portion as collateral. Where and how do I get started in seeing if it's possible? I noticed many lenders don't list "land" as collateral.
Would I have to get approval from the other share holders if I wanted to use my portion as collateral, even though the deed is in my name for the portion owned?
My piece of land was assessed a couple of years ago to be worth around $150K and I want to use the funds to pay down debts, I have a credit score of 676 currently and looking to borrow $30-40K.
Thanks!
Hi Guest,
In order to get a loan on the your portion of the land, you will have to sub-divide the property first. Once you get your portion of the property deeded to you, then you can look out for a land loan.
In order to get a loan on the your portion of the land, you will have to sub-divide the property first. Once you get your portion of the property deeded to you, then you can look out for a land loan.
So there is no other way other then having it sub-divided?
If I even wanted to sell my share, would it have to be sub-divided?
Thanks
If I even wanted to sell my share, would it have to be sub-divided?
Thanks
land loans are very risky business. no conventional lender is touching such a transaction these days. you'll probably have to consider a hard money lender, and that's going to be quite costly, if at all available.
