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Selling Land With a Mobile Home in Oregon? When You Should Remove the Home First.
Video: Oregon Land Owners: We Pay YOU to Remove Your Old Mobile Home!
Short answer: If you’re trying to sell Oregon land with an old mobile home on it, the home may be what’s holding the sale back. Many buyers rely on a land loan, and land loans are built for vacant land. Removing the home before you list (or before closing) can open the door to more buyers and keep your sale on track.
If you own land with an old manufactured home sitting on it, this guide explains why that home can cause trouble, how the removal process works in Oregon, and what to do first.
Why an Old Mobile Home Can Make Land Harder to Sell
Land loans are built for vacant land
A lot of people buying land plan to build on it. To pay for the land, they often use a land loan. Major lenders describe a land loan as financing for property without a home on it, and some lenders list “a dwelling” as something that falls outside their raw-land programs.
Every lender is different, so this isn’t a hard rule everywhere. But if an old home is still standing on your property, a buyer’s land loan may not be an option.
The old home may not qualify for a regular mortgage either
So the buyer might try a regular mortgage instead. That works only if the home itself qualifies. For a conventional loan, a manufactured home generally needs HUD certification labels and a permanent foundation, and it must not have structural issues, dry rot, soft floors, or electrical or plumbing issues. Homes that don’t meet all of these standards often get denied financing during underwriting.
The “stuck in the middle” problem
Put those two things together, and the buyer is stuck:
- No land loan, because there’s a home on the property.
- No conventional mortgage, because the home can’t be financed.
That leaves only cash buyers. And a smaller pool of buyers usually means a longer wait and a lower price for you, the seller of the land.
Two Common Situations We Can Help With
You haven’t listed yet
Many sellers call us before they list. Land with the old home gone is easier to show, easier to finance, and easier for buyers to picture. Taking care of it first keeps you from losing buyers (or getting a lower price) because of a structure nobody wants.
You’re under contract and the buyer wants the home gone
Sometimes a buyer writes the removal into the purchase and sale agreement. The home has to be removed before they’ll close. If that’s you, time matters. Closing deadlines move fast, and removal involves paperwork that can’t be rushed. The earlier you call, the better the odds of closing on schedule.
What’s Involved in Removing a Mobile Home From Your Land in Oregon
Details vary by county, so always confirm with your county assessment and taxation office as well as the land use and planning department. Based on what Oregon counties publish, here is what typically comes up:
- Taxes must be paid. Counties generally require taxes on the home to be paid in full, including interest and fees currently due, before they’ll process a move or a demolition. Counties also issue a tax certification confirming this. Fees vary by county.
- Any loan on the home must be released. If a lender has an interest in the home, the lender typically has to sign off.
- Ownership paperwork has to be updated. Oregon’s Building Codes Division (BCD) keeps the official ownership records for manufactured homes through the Manufactured Home Ownership Document System (MHODS). Removing or demolishing a home generally means filing the Manufactured Home Ownership Document Application (Form 2952), along with the original title or ownership document. If the home is being demolished, the demolition date goes on the form, and the labels on the home are returned to BCD.
- Permits. Your county may require a demolition permit. If the home is being moved to a new site, there are also placement permits (from the city or county where the home is going) and trip permits involved.
- The county confirms the home is gone. After demolition, the county typically verifies the home no longer exists and notifies the state.
If you own both the land and the home, they’re often (not always) recorded together as real property, and the paperwork can look different. If the home is attached to the land, we’ll need to file Form 5175 to remove the home from the county deed records and create a new title in the MHODS system.
That’s a lot of moving parts, and one missed step (an unpaid tax bill or a missing lender signature, for example) can stall everything. It’s the kind of thing we handle regularly, so you don’t have to chase it yourself.
Move It or Demolish It?
It depends on the home.
Still in decent shape? It may be worth moving to a new site, and depending on the home, that could mean you get paid instead of paying.
Too old or too worn out? Demolition is usually the answer.
If the home is past the point of repair, demolition often runs somewhere around $8,000 to $15,000 (sometimes more if there is asbestos in the home). That’s money out of your pocket, so before you hire a demolition contractor, make a quick call to us. Depending on the home, we may be able to buy it, so removing it doesn’t have to cost you anything.
Checklist: Before You List Land With an Old Home
- ☐ Find out if there’s a loan or lien on the home.
- ☐ Check that the home’s property taxes are current.
- ☐ Locate the title or ownership document.
- ☐ Decide on a timeline, especially if you’re already under contract.
- ☐ Call us before you hire a demolition contractor.
Frequently Asked Questions
Can I sell my land with a mobile home still on it in Oregon?
Yes. But it can limit your buyers, especially anyone relying on a land loan.
Do I have to remove the home before I sell?
Not necessarily. Whether it’s required depends on the buyer, their lender, and what your purchase agreement says.
Will a land loan work if there's a home on the property?
Often not. Land loans are generally designed for vacant land, though every lender is a little different. Ask the buyer’s lender.
Who pays for the removal?
That’s usually negotiated between the buyer and seller. Many buyers will write a lower offer and make that offer contingent on the home being removed prior to closing. Many sellers prefer to handle it themselves, ahead of time, so it doesn’t become a bargaining chip for the buyer. However, if you end up working with us, we pay all those costs for you.
What if I still owe money on the home?
The lender typically has to release its interest before the home can be removed or demolished. Depending on the condition and year of the home, we may be able to make that payment for you.
What if I owe back taxes on the home?
Counties generally require them to be paid before they’ll process the paperwork. Depending on the condition and year of the home, we may be able to make that payment for you.
Can the home be sold instead of demolished?
Sometimes. It depends on its age and condition. That’s one of the first things we look at.
Not Sure What to Do? Call Us First
Whether you haven’t listed yet or you’re up against a closing deadline, we can look at the home, explain your options, and handle the removal from start to finish. Call us at (503) 893-9691 or visit inkedre.com for a free, no-obligation conversation.
While I graduated law school and passed the bar exam in New York, I’m not a licensed attorney. This is not legal advice. Requirements and fees vary by county and by lender, so confirm the details with your county, your lender, and your own attorney before making decisions.