I had a very interesting talk with my neighbor yesterday. This is in Hookstown, PA. 15050. When she applied to refinance a new Mortgage at a lower rate the bank did a title search and it came back that there was a $500,000,000.00 lien on her property. She went to investigate and it turns out that Chesapeake took out a loan using land leases as collateral ! I am sure this would include our farm and others too ! What would this mean if we want to downsize and sell our farm ? ALSO..... one more thing...... A Good friend came to our farm yesterday and said that Range asked to survey his farm for a well. He told them he signed with Chesapeake. They just smiled and said . ".. Yes , they know this ? " This farm is in Georgetown, PA. What do you make of this ???? Any information... on both of these would be appreciated. Thank you.
#1 This includes many leases including ours and many in Ohio. Should not affect refinance or selling. Get a knowledgeable attorney. Also bank may be clueless ... ask to speak to someone with experience. Go to local bank. Obviously bank based in NY will have different attitude and know less than bank in Texas, North Dakota, PA, OH, Oklahoma.
#2 If guy signed with Cheaspeake but neighbors signed with Range then Chesapeake will sell or trade property to/with Range. That will be documented in recorders office.
Thank you James ! #2.... ALL neighbors are with Chesapeake.
Nancy - there has been a lot written about this on other threads on GMS - do a simple search and you will see the discussion that took place on this very same issue.
The date of the filing with your counties Recorder should be 09-05-2013. This is the date that it occurred in many of the other counties where property was located. The mortgage is between CHK Utica LLC and Deutsche Bank. Of the 509 pages the first 50 or so are the actual terms of the mortgage and the remaining pages are the leases and property that is affected by the mortgage.
You can obtain a copy from you local County Recorder's office. It makes for interesting reading.
Anybody know about this ? A ton of names on the mahoning county recorders office as of last
If you prefer reading the whole thing online you can go to the Trumbull County Recorder's web site and download the entire document from there.
The first 30 or so pages are posted as PDF files in the thread that you listed.
Nancy, In our area PNC bank and Esb Bank are both now refinancing mortgages or issuing new mortgages on these properties with these liens, on a case by case basis. If a bank doesn't want to touch it, then either you have a really really bad lease or the bank doesn't know what they are talking about. ESB bank wouldn't touch a mortgage if this lien was on the property until the first of this year. Someone woke up and understood what the deal is/was. The title companies are the ones who are really messing it up though because their reports back to the bank state the lien is against the property with no mention of it being on the leases.... I've seen one of these reports.
I was told by two different banking folks that a very few leases do put the oil companies' interest above a banks mortgage... those are the ones they won't touch.
Thank you ALL.... so very much with your knowledge ! ( We paid cash for our farms so we do not have a mortgage .) Would this affect us if we decided to sell a portion of our mineral rights in the future ? My husband is ill and I am having to make most of the decisions on finances . I just want to do the right thing for us and our farm. This.. is all so confusing. Trying to learn all I can. God Bless you ALL.. for your help ! I read a few years back that CHK. would be selling off all leases south of the Ohio River. So saying a prayer that is correct. Again... Thank you, Thank you for all your help ! Todd and Craig....A big Thank you to you !
Thank you Eric.