Can You Buy Mortgaged Properties in Monopoly?

Yes, you can buy a mortgaged property in Monopoly. There is no set price for such a transaction, so it’s what you agree with the title owner.

A player may mortgage a property when they need to raise money fast. To do this, they refer to the back of the title card and collect the stated mortgage value from the bank. The mortgage value is usually half what the player initially paid for the property.

Together with this, they need to keep the title card face down to indicate to all players that the property is mortgaged, allowing you to buy if the owner is willing to sell. Read on to find out more about buying mortgaged property in Monopoly.

Steps for buying a mortgaged property in Monopoly

Once you decide you want a mortgaged property in Monopoly, the first step is to ensure you have all the money you need for the transaction.

Then reach out to the property owner and make your offer. Once he agrees to sell, and if the price is right, you, the buyer, will hand over the money, and the seller will give you the mortgaged title card. There is no set price for any property, whatever the seller finds acceptable.

Although property ownership is transferred upon cash exchange for a title card, the property remains mortgaged, with its back facing down. All its liabilities are now on you, the new owner.

The next logical step is to unmortgage it so that you can start earning money from it. In Monopoly, the unmortgage value is indicated at the back of the card. The bank interest owed is just 10 percent of the unmortgage value. So, for example, if the unmortgage value is M500, you will need to pay the bank M500 plus M50, a total of M550, to be able to lift the mortgage immediately upon receipt of the title.

If you delay, a penalty of 10 percent will be levied against you. The total payment, in that case, will be computed as follows: M500 plus M50, which is 10 percent of the bank interest, works out to M550. Then add the penalty for the delayed payment, which is 10 percent of M550. This works out to M55, so your total payment will end up being M605.

It is best to plan to unmortgage the property as soon as the title is transferred to you.

Summary of steps for buying a mortgaged property in Monopoly

STEP	What you need to do
1	Confirm you have sufficient funds to pay the seller and cover the unmortgage value and bank 10 percent bank interest.
2	Reach out and negotiate with the mortgaged title card owner
3	Exchange cash for title card
4	Unmortgage title by paying the unmortgage value and bank interest immediately.
5	Turn the title card face up and start collecting rent or developing property if you have the complete set of the same color block.

Why should you buy mortgaged property in Monopoly?

You already have the title cards for the red color spaces, for example, apart from one. This means you cannot maximize your investment, as the Monopoly rules will not allow you to build houses, and later hotels, on your property unless you own the whole red block. Then your “neighbor” mortgages the only other red-colored property. It is in your best interest to negotiate with them to get it for a reasonable price so that you may start developing your properties.

The same applies to a railroad. If you can own all four railroads, whoever lands on one of them pays you M200. This makes a mortgaged railroad an attractive asset if your strategy involves collecting maximum railroad rents.

Or maybe you have noticed the space for the mortgaged tile has high traffic and is likely to earn you a good return, even on its own. If you can get a reasonable price, take it.

It is also an opportunity to do an indirect exchange. So, although Monopoly rules will not allow you to trade titles, depending on the assets you and the seller have, you can end up with an exchange. If you like what he has put on the mortgage and he likes what you have, you can negotiate and come up with a deal that benefits both parties.

Some people also want to buy a mortgaged title for strategic reasons, especially later in the game. By purchasing the mortgaged title, they offer short-term relief to the seller. Because the seller will not be able to build on the block, low income coupled with high expenditures will eventually lead the seller to bankruptcy and out of the game.

Conclusion

Buying a mortgaged property in Monopoly can advance you in the game in several ways. It can help you get the title to a high-traffic space, complete a color block set, or strategically push out an opponent on your way to winning the game.

However, before buying a mortgaged property, ensure you can cover its price and the cost to unmortgage it. It is pointless to buy a mortgaged property that you will not be able to unmortgage immediately, as it becomes a liability to you. This is because you will not be able to collect rent as long as it is mortgaged, and there will be a penalty if you cannot raise the money upon the transfer of title.

FAQs

In Monopoly, what does “mortgage” mean?

In Monopoly, when you mortgage a property, you have borrowed half its value from the bank in exchange for your right to collect rent or build on it. Mortgages put a property on a temporary hold. However, you will still have the title card and can regain full use once you repair the loan with interest.

Can you buy any property that is mortgaged in Monopoly?

Yes, you can purchase any mortgaged property in Monopoly if the title card owner is willing to sell it to you at an agreeable price.

What is “unmortgage value” in Monopoly?

The unmortgage value is the cash you’ll need to pay to lift the mortgage on the property. In Monopoly, it is on the back of the title card. The unmortgage value is 50 percent of the original property value.