USDA loans
I have lived in my subdivision 12yrs....a year ago I put my home on the market, sold it and 1hr before closing it all stopped...the builder of the subdivision did not build the road to meet guide lines for the county to maintain the road...no one was aware of this...the only option I have is to sell USDA or cash only...here it is a yr later and I still haven't sold...almost impossible I feel like...I tried getting the other homeowners to sign a homeowners agreement but have one that refuses...any suggestions? by lilredhead_@msn.com from Madison, Alabama. Jul 30th 2014
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
the first thing I would do is talk to other folks in your neighborhood and find out who they used to obtain financing.. the road issue might be a problem with your lender but not with others.. if that doesn't work, then contact an attorney and see if you have recourse against the builder.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
Jeff Schnell (JeffSchnell)
#55 ranked lender in Kansas - 21 contributions
I would speak to an attorney about the liability of the developer of the subdivision. Also, typically City and/or County inspectors sign off on the main parts of developments such as water, sewer, and roads in order to start building homes....... What is the homeowners reasoning for not wanting to sign a home owners agreemetn for road usage? It would seem necessary for any of the current home owners to be able to sale would be to work together now.
Pete Bass (PeteBass)
#30 ranked lender in Connecticut - 476 contributions
Contact your real estate attorney and your local Town/County Government andexplain your situation. You may want to speak with your neighbors as this effects them as well. As a group you may be able to have a bigger voice in your community.
we can not do anything to the developer...he has filed bankruptcy and no where to be found...as the homeowner who refuses....they say they signed a agreement elsewhere and it was a headache..i have tried on numerous times to explain that this effects them as well but it seems to be no use...we've talked to the county engineer, they say they will not take over the road unless we the homeowners want get the road up to part and meet there guidelines..yea right...I am a single mom just wanting to sale a home...pretty frustrating....
thank you all for the suggestions...I lived there for 12yrs and there has been homeowners saleing and coming in with no problem....Obviously with all the guidelines changing for lenders, its become a problem now...As I said before, we the homeowners didn't know about the road issue til my house fell thru the first time...that's when I found out that my home could only be bought usda or cash due to the fact the road is consider private and no one maintains it legally....that's when I tried setting up a meeting well twice with the homeowners with a attorney that was willing to help at my expense. I had others kicking up about it at first...they just thought I was lieing and my realtors were just trying to make a sale, so they did there own investigating an found out everything I was saying was true...needless to say I have one homeowner refusing to sign anything regarding the matter we the homeowners will maintain the road...crazy!!!.....so the first sale fell thru....my second sale was just a month ago...it was a young couple just graduating from college..getting married this sept but due to them never having history of any type of rental they too were unable to get the usda loan.....again they both lived with parents while in college...everytime I turn around its something....so basically im stuck....
Jeff Schnell (JeffSchnell)
#55 ranked lender in Kansas - 21 contributions
What exactly is it that wasnt built to "guide lines" for the County to maintain the Road? That could be a gray area in lending guidelines.If you can't go after the builder/developer due to them filing BK, can you find out from the City/County if they had to meet certain guidelines to develop the land, and who signed off on those. I know of a developer here in KS that was developing in the County, but wanted City access for certain things and the City Engineers signed off on his road ways. A few years later the roads started having issues and the owners came back to the developer and the developer was able to go back to the City Engineers office who signed off and they had to pay.I loaned on some land last year next to a lake where the roads were not wide enough for county to take over and the HOA had to maintain the roads..... but there was no HOA so it was an owners agreement to keep the road maintained. With a homeowners agreement in place it allowed us to lend. At that time I was with WFHM; we discovered the issue on the appraisal and it had to be addressed. We physically had to have the home owners sign this agreement to close the loan.I am going on a limb and say that this is going to be a general lending issue based on information that the lender will get back on the appraisal. But I would still call local lenders and explain exactly what is going on with the roadway and the maintenance of it. See if they have any products that could help; come local banks still do loans in-house and can get around this issue. Credit Unions also do all of their loans in-house and may not have an issue.Beyond that, if you cant work the lending issue out you have a bigger problem. What happens when the road starts to break down and you have pot holes to be fixed. At that time, without a homeowners agreement the burden to fix the road will be on the home owners who actually care about the neighborhood. I am not sure about AL laws, but I would talk to an Attorney that specializes in HOA's and see what the vote count has to be to actually start an HOA. You may not need the last home owner to start one. Once there is an HOA in effect you could have the HOA sign a road maintenance agreement and that would allow for the sale. It would also force the non-compliant home owner to help pay for any road work to be done in the future.You can contact me at JSchnell@BNCBank.com if you have any more questions. I hope this has been of some help.
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
My initial though is the same as William. Find out what the neighbors did for financing. I'm pretty sure they all didn't pay cash.
I tried to start the HOA(road maintaince) with the help of attorney and my realtors.....you have to ALL homeowners to sign which in my case there is 18....the attorney is checkn in to see if there is away to exclude the one that want sign....all this has to be signed, notorized and recorded at the court house inorder for lenders to lend besides usda.....as far as the maintaince we the homeowners fix the pot holes if needed ourselves..other than that theres really nothing has to be done and that also includes the maintaince of the subdivision sign....the one homeowner who refuses states he signed one in Chicago where he lived I believed and had problems that he wouldn't address....I tried setting up a meeting the first go around to just for the homeowners to address any concerns or questions with the lawyor, set amount that met all homeowners needs....not asking for anything to be fixed at this time, just the agreement and got no where....these people don't get it effects them as well especially if they decide to move but obviously they don't care...at this time there is one other home forsale, foreclosure, and 2 more bout to go up....im beyond tired of dealing with all this and getting know where...I don't know how this developer got away with all this, but my subdivision is not the only one out there he's done this way....my realtors have checked with different lenders that they deal with and they are all saying the same thing.....someone has to maintain that road....we've talked with the engineer over the roads, the county commissioner...not getting anywhere......
far as how people are getting loans, there wasn't a problem until all the guidelines changed for lenders......the same day my sale went thru someone happened to buy in our neighhood....it was a usda loan and they had to sign thru there lender they would help maintain...believe me I've checked and rechecked every option....now im just waitn to see if one can be excluded and lenders still beable to lend and it not be usda....basically that's my problem...if u don't qualify for usda you cant get a loan
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