Has anyone else been given the packet of information to fill out for Countrywide Home Loans for permission to sign the subordination agreement? It is alot more complex than what JPD sent out. Countrywide charges $150 up front with no guarantee that they will approve the lease and the $150 is nonrefundable. In addition, they specify that they have the right to keep any bonus and proceeds to apply to the loan. If anyone in the Southern Hills group or Greenwood group can shed light on how they handled the packet of information, it would be much appreciated.

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With the foreclosure rates rising nationwide, you will see banks raising fees to earn more cash, and requireing revenue made from the property from leasing and royalties to be applied to the loan. It probally doesn't help that countrywide went belly up and is now controlled by a califonia bank (Bank of America)
Aren't there clauses in mortgages that say one can't transfer any interest in their properties without the the mortgage company's approval?
Those are good questions!
If you lease land to farming or sell off the trees, the land will still be there but if you lease your minerals, aren't you acutally selling them? I mean they will be carted off so part of that land will be gone forever. The ownership of the minerals will have transferred to someone else.
So I'll bet the mortgage companies may be figuring unless the mortgage specifically specifies what's mortgaged, nothing is excluded.
With trees and crops, the land is just being used, not sold. Aren't minerals considered physically part of the land?

The mortgage is for the property. Unless it is excluded in the mortgage the minerals are encumbered by the mortgage. I always require a mortgage to be subordinated.
not the minerals themselves but the mineral rights.
Are you refering to the viabilty of the demand to use their paperwork and pay their fee (which i consider to be ridiculously high)? Or ro the demand to apply the money to the principle?
Still wondering if anyone else out there filled out Countrywide's application and found it to be difficult to understand?
As to the paperwork and fees, you may have valid points.

But to the rights of the mortgage company to demand how the proceeds are applied...good luck.

You have many good points. I feel like most modern loan documents are impossible to understand by the average joe. (part of the problem with todays mess, but thats another debate for another day)

I believe is not the minerals themselves burdened by the mortgage, but the mineral rights. And you are most certainly correct in saying that they were probally never were considered in evaulating the loan. especialy in todays world of big banks in New York controlling the market.
I do not quite understand all of this. My mortgage is with Countrywide and I had no issues when I signed my lease. This was never even mentioned.
We you required by your lessee to get a subordination?

If you weren't your martgage co. is unaware of your lease.


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