What Are My Options If I Can’t Afford My Rural Property Payments?
When Land Payments Become Too Much to Handle
Rural land ownership offers freedom and opportunity—but when financial hardship strikes, keeping up with land payments can become a serious challenge. Whether caused by job loss, medical bills, or rising living expenses, falling behind on mortgage payments can be stressful and disheartening. Fortunately, foreclosure isn’t the only option. There are several strategies property owners can explore to avoid losing their land.
Meet Tom and Angela: A Solvable Example
Tom and Angela purchased a 40-acre parcel of wooded land in northern Wisconsin with dreams of building a retirement cabin. But when Tom was unexpectedly laid off and Angela’s freelance income slowed down, they quickly fell behind on their mortgage.
“It started with just one missed payment,” Angela recalled. “Then another. Before we knew it, the bank was calling, and we were afraid of losing everything.”
Rather than waiting for the foreclosure process to begin, the couple started exploring their options. They considered refinancing, but with their reduced income and a recent drop in property values, that path wasn’t viable. A friend advised them to reach out to a land investor who had experience navigating complex property situations.
Exploring Viable Alternatives to Foreclosure
If you find yourself in a similar situation, here are several routes you can consider:
- Loan Modification
Some lenders are willing to modify the terms of your mortgage to make payments more manageable. This might include:
- Lowering the interest rate
- Extending the loan term
- Adding missed payments to the end of the loan
Loan modifications can be time-consuming and require detailed financial documentation, but they can help preserve your ownership if you’re able to continue making reduced payments.
- Temporary Hardship Plan
If your financial difficulties are short-term, you may qualify for a temporary forbearance or hardship plan. This allows you to pause or reduce payments for a limited time while you get back on your feet.
“We were relieved to learn there were ways to pause payments without damaging our credit right away,” said Tom. “It gave us a little breathing room.”
- Short Sale
If your land is worth less than what you owe, a short sale may be an option. With lender approval, you can sell the property for less than the mortgage balance, and in some cases, the lender will forgive the remaining debt. Short sales require cooperation from the lender and buyer but can be a good option for avoiding foreclosure.
- Sell the Land to a Direct Buyer or Investor
This is the route Tom and Angela ultimately took. They sold a portion of their land to an experienced land investor, who worked with their lender to structure a deal that cleared their remaining mortgage balance. The investor handled the negotiations and closing details, relieving the couple of the debt and stress.
“We never thought selling part of the land would be the answer,” Angela shared. “But it saved us from foreclosure and gave us a clean break.”
Moving Forward with Confidence
Tom and Angela’s story is a powerful reminder that proactive action can lead to real solutions. If you’re struggling with rural land payments, don’t wait for foreclosure notices to arrive. From loan modifications to direct land sales, you have choices.
If you’re unsure where to start, speaking with a reputable land buyer or property advisor can help you explore the path that makes the most sense for your unique situation.
Don’t let debt decide your future—take the first step toward relief and regain control of your land and finances.
Liberty Land Traders can help. 715.303.3837 – land@libertylandtraders.com