Gas Company Financing is Preventing Residents From Getting Mortgages

EXCERPT:
"The mortgage is technically on the mineral rights, but it has to be filed on the property," Ward said. "In the courthouse, there is no separation (between the mineral rights on the one hand, and the land and buildings on the other). So unless you've separated your property, it's just one deed."

"For some people [those who want mortgages], it has started to cause some issues, because, for one, they were not notified of this, so the first time they find out about it is when they go to the bank because they need to put a mortgage on their home to get a little cash, and the bank says to them, 'By the way, you are fully mortgaged to the hilt. There is no way we can give you a mortgage.'"


COMMENT:
This is something the 'landman' and the gas companies don't tell you about when they offer to 'lease' your mineral/gas/oil rights. This is NOT a lease, but a transfer of sub-surface real estate. ie: a corporate land grab.

For folks who have leased their mineral rights, mortgages are not an option.

JAMES LOEWENSTEIN
August 1, 2011
TOWANDA - Chesapeake Energy Corp. recently mortgaged the mineral rights on over 1,000 properties in Bradford County, which in at least a couple of cases has prevented property owners from taking out a mortgage on their homes, a former Standing Stone secretary/treasurer said.

Diane Ward, the former secretary/treasurer of Standing Stone Township, brought up the matter at the most recent meeting of the Bradford County commissioners.

Chesapeake has mortgaged the mineral rights on over 1,000 properties on which it has a gas lease in Bradford County, in order to fund its drilling operations, Ward told the commissioners.


She said that many local property owners aren't aware that Chesapeake can mortgage the mineral rights on their properties.

"For some people, it has started to cause some issues, because, for one, they were not notified of this, so the first time they find out about it is when they go to the bank because they need to put a mortgage on their home to get a little cash, and the bank says to them, 'By the way, you are fully mortgaged to the hilt. There is no way we can give you a mortgage.'"

She said that local banks need to realize that the mortgages are only on the mineral rights, so that the banks will continue to give out mortgages to local residents....continued....