I asked a credit bureaucrat what would be the motivation of an owner on a private road to sign an agreement that requires them to do something they had never had to do before? He pretended he didn`t understand the question. These regulators will abolish a credit before answering important questions like these. 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. It is only yesterday, after receiving a copy of the assessment for which we paid for a HELOC, that we are informed by the lender, a credit union, that we must provide a PRMA before closing. Jesus. Fortunately, we don`t really need money, but this could cause so many problems for everyone on our way in the future.

I may have a good chance of getting the other three owners to sign something, but it`s got to go well. What a crocodile. Thank you for your well-written article. Fannie Mae editorial line for real estate on a private street in CT. On Thursday, August 6, I wrote a blog called “Underwriters Do Have A Sense Of Humor” in which I blog about a question I asked my underwriter and the response I received. The question was about the Fannie Mae Guideline for Properties On A Private Road. I knew Fannie Mae needed a private real estate maintenance contract on private roads, but I couldn`t find the directive in Fannie Mae`s MRI book. Gary, you should be right, but the problem goes to an insurer who is not a lawyer who is trying to meet a long and complex list of HUD or FHA or HUD eterwriting requirements, and they are told by their superiors that they must meet the written road maintenance requirements, unless that state has done so through a particular law that waives that requirement. corrected. I don`t know why someone on a private road wouldn`t be willing to participate equally in road maintenance costs…