mortgage subordination agreement.

What step do I take if mortgage company won't sign agreement. They are not c coming on my land or anywhere near it but we are just part of the unit. Please advise

ThNks

Views: 2360

▶ Reply to This

Replies to This Discussion

Permalink Reply by kit on June 7, 2014 at 1:33am
I really appreciate and i know i that i need to get an attorney however...what am i supposed to take to attorney? I only have the sub agreement they wont sign. Which i am glad now they didnt. Should ijust wait and she what maybe between the bank and the gas come up with? Then the gas company will email me the new agreement and then i will take to the attorney. Or should i wait..this might just pass because i asked the rep at gas co..the clerk that i have been talking to...i asked him if we would still get paid on our property without the sub agreement and was told it was too late in the game for them to make changes and not include us in the unit because they have too much invested to make changes. Or should I go ahead to a lawyer with my paperwork and let him review the paperwork and see what he can come up with maybe he can deal with the gas company and with the bank and they can come up with a better agreement for me. Or like my husband says just let it pass. Thank you again.
Permalink Reply by george m vietze on June 7, 2014 at 2:12am

My personal opinion is that I don't believe it is as bad a situation as I originally thought, your posting the agreement made a big difference.  I do not believe the lease gives the gas company any right to borrow money on your interest in your land and the subordination agreement just protects the gas company against the bank foreclosing out the lease in the event of a foreclosure because the loan was put on before the lease and the lease was recorded after the loan, not before the loan, which would have put the lease in a prior position and the bank could not foreclose out the lease.

You could make sure the bank has a copy of the

 Subordination Agreement and a copy of the lease and agree that 50% of any payments

paid under the lease will be paid to the bank to pay the loan to give the bank a monetary incentive to sign the agreement.  It is not a bad idea to pay off any debt on your land, free and clear land with no debt with royalty payments works good.

 

Good luck

Use any combination of the above that makes sense, the concept is to give the bank a monetary incentive to sign the agreement and since you should want to retire that debt this might be a good way to solve both problems....

Permalink Reply by kit on June 10, 2014 at 7:01am

Well the gas company is waiving the requirement...no mortgage subordination is needed.. I don't know what a t that means. Anyone know here?

Permalink Reply by george m vietze on June 10, 2014 at 8:06am

The gas company is willing to accept that the recording of their lease on your property is sufficient to notify the world that your property is subject to the terms in the lease and the gas company is willing to take the risk that any potential foreclosure is not enough of a risk to them to require the bank to sign a subordination agreement.  That part of your problem is solved.

Permalink Reply by kit on June 10, 2014 at 8:48am

So..they SAid I'm still in the unit and still will be getting checks. That's good then I guess. ....

Permalink Reply by kit on June 10, 2014 at 9:07am

I am assuming I will get my royalties ? That they won.t hold them...

Permalink Reply by george m vietze on June 10, 2014 at 9:07am

Yes, you are good, please accept prosperity......the checks will be coming!

Permalink Reply by kit on June 10, 2014 at 9:28am

You have helped me so much through this ordeal ..thank you so much!

Permalink Reply by george m vietze on June 10, 2014 at 9:48am

I hope that the mineral beneath your land reap you and your family all the blessings you have earned.....!!!

 

Your welcome!

Permalink Reply by kit on June 11, 2014 at 2:07pm
Still trying to find closure on this. I understand in part but then I guess how can they still put me in a unit when my bank dont agree.
Permalink Reply by george m vietze on June 12, 2014 at 12:11am

The bank has a first mortgage on the property, most likely prior to the lease being recorded on the property.  The gas company has leased the mineral rights and recorded the lease after the bank has recorded their lien.  One has nothing to do with the other.  The bank does not have to agree to anything in order for you to be in a PRODUCTION UNIT.  If the gas company puts your property in the PRODUCTION UNIT and they produce gas your will get your royalty income based upon the percentage of ownership in the UNIT.  The only thing that the SUBORDINATION AGREEMENT would do is to insure the gas company that in the event of a default on your mortgage and the property was foreclosed upon there is a possibility that the lease might not be recognized by the new owner.  The gas company has decided,by not requiring your bank to agree to the Subordination Agreement, is to take that risk and not make it a requirement of your being in the UNIT.  Unless that changes you should be fine.

The chances of your mortgage being foreclosed is probably very small.  If it were to become a problem the gas company could purchase your "mortgage" and own your property, IF YOU WERE TO DEFAULT ON THE MORTGAGE.  I do not know how important your property is in the UNIT but obviously the gas company, by waiving the requirement, does not see a problem.

Permalink Reply by kit on June 12, 2014 at 2:11am
Well. Thank you again I finally am at rest I understand the whole situation and now I have to understand it in order to be at rest I finally have closure thank you again for answering this question

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service