Tip for Buyers: beware of dangers of easement roads with no road maintenance agreements. Common practice here. Underwriters often kick out these loans.
Why? I’ve heard of the usual problems with people not wanting to chip in for gravel and repair but I dont see how this impacts underwriting. I’d think the underwriter would just care that there is a legal easement.
Good question. What I have heard from underwriters is that Fannie/Freddie rules require that easement roads shared with others must have formal road maintenance agreements. These agreements are not all that common here in the Northwoods. Most easement roads just “pass the hat”. I live on one myself and we have no formal agreement. There are other possible ways around this requirement but I would have to bounce them off an attorney to see what their opinion is.
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