Seller financing-Defaulting on Loan
What happens if a buyer defaults on a seller financing deal after they have already made improvements to the land?
Here's the story… I am a realtor inGainesville FL and I have the seller and a potential buyer posed the question of seller financing and my seller is not opposed to it. One of his questions was what happens if the buyer defaults on the loan and he has already started building his house or put some sort of improvements on the land. Would it be as simple as the seller will then just take the land back or will there have to be legal remedies in order to get everything in order?
I spoke to a lender and she said that most mortgage companies will not loan out money if they dont actually own the land and in that case the mortgage company will pay off whatever still due. But what happens if they decide to put on a home or a mobile home or a pole barn that they paid cash for?
Thanks in advance for all your help!