Originally Posted by buzz
It is 11 acres of land...that is leased...Local bank doing all the paper work, bank from North Dakota doing the final FHA loan......no issue at all with gas rights.
Gas right leasing is done in a lot of states....this is not new. To insinuate that one can not get a loan or re-fi due to that......is fear mongering......kinda like a democrat....
So, I suppose HUD is fear mongering???
HUD, (in its Handbook, 4150.2, page 2.7) puts it this way.
Operating and abandoned oil and gas wells pose potential hazards to housing, including potential fire, explosion, spray and other pollution.
No existing dwelling may be located closer than 300 feet from an active or planned drilling site. Note that this implies to the site boundary, not to the actual well site.
The appraiser must examine the site for the existence of or any readily observable evidence of a well.
The fact is many larger banks will not finance to gas leased lands, some will. It does not appear to be as much of an issue with smaller, local banks, despite it being in direct contrast of HUD's policies.