technicality holding up closing

Indiana
I have a construction loan and have been trying to get into final closing to take posetion of the property.
The final is a 30yr fixed FHA loan.
The property is in a rural location.
problem: At the last week before closing the bank wants a private road maintenance agreement with the other property owners, some of which don't reside on the road or even locally. The other owners are reluctant to sign.
question: Can they not close this loan if the other owners don't cooperate?

[nextwife]

Certainly. A Fannie Mae, HUD or any secondary market loan must meet certain guidleines to COMPLY and be sale-able. If you have a property on a private road and have NO agreements in place, the loan may not be in compliance and the investor would be stuck and unable to sell it (the loan). Thus, they will not close until all market compliance issues are resolved.

The loan was preapproved in October, we started this process in June. The well had to be proven prior to approval and the construction loan was contingent on approval of the final mortgage being preapproved. The easements are in the deed/title work. The thing that is lacking is a maintenance agreement. Now that the home is built they bring this up, one owner has already indicated they have no stake in the private road and don't plan on signing. I'm stuck with a construction loan that matures in about 3 months and do'nt have possession of the house. I am renting where I live now, we are expected to be out of here by the 17th of Feb. Relying on the information from the finance company holding the construction loan (also the broker for the final loan)I gave notice to our landloard for the 17th of Jan. Due to this "new" detail I have breeched the contract with the landloard and had to pay an aditional months rent plus forfit my deposite and still have to turn over the rental by the 17th of Feb. I have the utilities at both homes turned on and have to keep the new home heated because the water was turned on to the house and has to be protected from freezing.

[HomeGuru]

Writer, I sugest you find alternate financing such as a conventional loan not insured or connected with the federal government.

[nextwife]

Try an area lender who is accustomed to HOLDING loans on these non-conforming parcels. Try shopping for a local portfolio loan. Maybe the current attempted lender, as they are unable to close your loan, will agree to transfer your file there.

[HomeGuru]

O r maybe a different lender will not require the road maint. agreement.

The lender for the construction loan has agreed to rewrite the loan to allow us access to the home until we can get the road issue settled.
However in the mean time we have discovered the drive to the neighbors house has not been recorded on any of the titles/deeds. His drive leaves the recorded easement and travels across our property. His property does have a border with the easement before it reaches our property.
With sufficient time allowed to comply, can I make him put in a new drive so it does not cross our property?
His existing drive is not old enough to be grandfathered in as an easement of record.

[HomeGuru]

Originally posted by Tim Hartman
The lender for the construction loan has agreed to rewrite the loan to allow us access to the home until we can get the road issue settled.
However in the mean time we have discovered the drive to the neighbors house has not been recorded on any of the titles/deeds. His drive leaves the recorded easement and travels across our property. His property does have a border with the easement before it reaches our property.
With sufficient time allowed to comply, can I make him put in a new drive so it does not cross our property?
His existing drive is not old enough to be grandfathered in as an easement of record.

**A: we can't say for sure one way or another, so hire a local attorney.

And the Hits just keep on comming....

You know guys, there is another option....


RUN!!!!!!!!!!

[HomeGuru]

Nah, that's too easy.

[nextwife]

"You know guys, there is another option....


RUN!!!!!!!!!!




Don't think he can. He already has a construction loan, and he's trying to close on the permanent financing, the end-out loan. Which implies that the home is already owned by him (subject to the mortage against it), and built on his lot that he already owns.

[HomeGuru]

Very observant.

Yes, we have the property and are trying to close the origionally arranged loan due to the benifits.
We feel the title company failed on their part researching the title. They had prior knowledge that the title search was for the purpose of meeting HUD requirements.

[HomeGuru]

Originally posted by Tim Hartman
Yes, we have the property and are trying to close the origionally arranged loan due to the benifits.
We feel the title company failed on their part researching the title. They had prior knowledge that the title search was for the purpose of meeting HUD requirements.

**A: if the title report is correct as provided by the title company, they did not fail.

[nextwife]

Tim, it is not the title companies responsibilty to "interpret" or know how their report will impact a particular lender's underwriting approval. It is their job to accurately report what is of record that affects the property. It is buyers responsibilty to review the title report, or have their attorney do so.