Does Fnma Mae Require A Private Road Maintenance Agreements
If I own the road technically, but all my neighbors have legal access, and let`s say the street needs work… just a little sorting and filling, but it costs 5k or 10k. (And yes, it costs.) As of October 1, 2014, the Fannie Mae Private Roads Directive in the TC will no longer apply because of the House Bill Number 5219, Public Act Number 14-67 “An Act about Maintenance Of Private Easements And Rights-Of-Way.” House Bill Number 5219, Public Act Number 14-67 will read much more like the FHA Directive for properties on private roads that do not have a “maintenance road contract”, FHA only requires a permanent facilitation agreement. Regulators do not understand real estate, and they certainly do not understand the effects of private road maintenance contracts, or they would never have written such a ridiculous rule. Since a recorded relief, such as that of this story, is legally part of the property, a registered fiduciary agreement guarantees credit with or without a road maintenance contract. The potential problems they envision for lenders are about a million times smaller than the problem they have created for buyers and sellers. Of course, regulators have never consulted with me or other rural brokers, but there would have been a simple answer if they had felt compelled to put such regulation in place because of an overpowered desire. They could have been an exception allowing a lender to include an explanation as to why such an agreement would not be suitable for the local real estate market and why it would constitute an unreasonable burden on all parties involved. But they did not.
Private road maintenance contracts should never be imposed on private owners through regulation and Fiat. Now, as soon as you know it`s a private street, think about this: have good information, especially since I had considered a house on a private street. Thnx for your well-written article. I find it frustrating that politicians are not just solving this huge problem for homeowners. We thought about buying a house on a private street, but then we decided, not because of what`s going on with the FHA loans on this one. In summary, the classification or program requirements of a street are NEVER accepted. Even if the land is located on a dirt road, this does not automatically mean that it is a private road. For four decades, the owners have been driving down this path, as they call it, without it being possible to discuss owner associations or road maintenance contracts.
I live in the VA. I have lived on the west side and I currently live on the east side. I have seen a lot of roads on land here, and I do not think there is a road in the state that has not had to be maintained for 40 years. Most of us regularly have potholes and drainage problems, and in much of the state we have to plow in the winter. So let me explain why you need such maintenance contracts. (They focused too much on selling to understand the legitimate reason, it seems.) Update March 23, 2015: Sad news people. The bill above is dead. The politicians of the Olympics probably have no idea how important it is and they did not take the time to vote. No one cares.
Oh my god. Wait until you try to sell your home on a private street and your buyer can`t get the FHA loan. Hundreds of homeowners will be affected, and imagine the desolation if you simply can`t sell your home to someone who receives a loan that requires FNMA participation. If many do not pass this simple bill, they will not be able to sell their homes, except to cash buyers or those who receive a conventional loan. If the property is located on a communal or private street and maintained, an appropriate, legally enforceable agreement or road maintenance contract is required. The agreement or contract should contain the following provisions and be recorded in the land registers of the jurisdiction concerned: for example, today`s video will discuss what should be done if the