WARNING: GAS DRILLING LEASES - Hidden Financial Dangers
Talk about environmental dangers!!.... How about the FINANCIAL DANGERS !!! Do you -- or your neighbor -- have a gas lease on your property? You may be in for a rude awakening if you go to sell your property or take out a home equity loan. Not only are more banks refusing to lend against these properties, but insurance companies are declining coverage or increasing premiums on properties located on or near well sites. That's right - just "near" - within 300 feet of the PROPERTY LINE from an active or "planned" drilling site….not 300' from the well ….but 300' from the PROPERTY LINE! So your neighbor's lease could render your property unmortgageable or uninsurable….! Attorney Randy Marcus notes that a number of insurance companies will not insure leased properties, or else substantially raised their premiums. The bigger question is this...will Fannie MAe, Freddie MAc or Ginnie Mae buy loans of this description. Bank & Lenders refusing leases: Bank of America, FHA, Fidelity, First Liberty, FNCB, HUD, Wells Fargo Check out this link for more details: http://lizjbucar.wordpress.com/2010/04/20/cochecton-zoning-to-allow-widespread-drilling-mortgage-troubles-on-leased-properties/#comment-1289
