Mortgage Lenders asking for Private Road Maintenance Agreement

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GTBay

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We're concerned that our request for a Home Equity Loan may be in jeopardy because the 1/2 mile length of private road lacks a written road maintenance agreement. Besides lending institutions, insurance companies are more and more concerned about policies written on properties located off private roads.

Our credit scores are 800+ with sufficient pension/retirement income but the appraiser has said the major banks are reluctant to approve financing if you are in our situation. The majority of the 14 homes along the lake shore are valued between $650K and $1.2M. No HOA because of the 3 decade development timeline. There are several owners that don't wish to spend $100 -$200 per year for snow removal, grading, gravel and dust control. Our deed gives us rights to travel in and out to our home and we do not own any part or section of the private road. It doesn't require anyone to pay for road maintenance but an informal group of neighbors do contribute to a fund that plows the snow as needed, about 65% contribute and the others do not. We've gone to the Township Board and they suggested a Special Assessment District approach and unfortunately we lack the 51% of petition signatures to bring it to the local township's attention.

The questions are: What recourse do we have with the property owners regarding road maintenance and a written road maintenance plan that would satisfy a lender?

Are the property/road owners required by law to provide adequate road maintenance year round for passage/ingress/egress if the access is written into the deeds?

How would a homeowners initiate legal proceeding to have a court judgement ensuring that property owners fulfill their responsibility for necessary private road maintenance?

Any other thoughts and ideas on how to approach this dilemma?

Many thanks!
 
We're concerned that our request for a Home Equity Loan may be in jeopardy because the 1/2 mile length of private road lacks a written road maintenance agreement. Besides lending institutions, insurance companies are more and more concerned about policies written on properties located off private roads.

Our credit scores are 800+ with sufficient pension/retirement income but the appraiser has said the major banks are reluctant to approve financing if you are in our situation. The majority of the 14 homes along the lake shore are valued between $650K and $1.2M. No HOA because of the 3 decade development timeline. There are several owners that don't wish to spend $100 -$200 per year for snow removal, grading, gravel and dust control. Our deed gives us rights to travel in and out to our home and we do not own any part or section of the private road. It doesn't require anyone to pay for road maintenance but an informal group of neighbors do contribute to a fund that plows the snow as needed, about 65% contribute and the others do not. We've gone to the Township Board and they suggested a Special Assessment District approach and unfortunately we lack the 51% of petition signatures to bring it to the local township's attention.

The questions are: What recourse do we have with the property owners regarding road maintenance and a written road maintenance plan that would satisfy a lender?

Are the property/road owners required by law to provide adequate road maintenance year round for passage/ingress/egress if the access is written into the deeds?

How would a homeowners initiate legal proceeding to have a court judgement ensuring that property owners fulfill their responsibility for necessary private road maintenance?

Any other thoughts and ideas on how to approach this dilemma?

Many thanks!

Simple, schedule a meeting of all concerned homeowners.
Discuss your concerns.
See if the concerned homeowners will contribute to money to hire an attorney.
Without one, your concerns will remain, concerns.

Eventually, you'll discover that only a judge can ensure contracts are enforced.

You might also invite your elected local and state government leaders to a homeowners meeting to see if government can or will assist you.

Be advised, their "help" comes at a price.

We chose to fund our own folly. We formed an organization (incorporated it) that we fund to maintain our local roads.

I happen to own a small cattle ranch in Texas' hill country. We did this as an offshoot through our existing Cattlemen's Association. In Texas, ranchers and cattlemen often have their own (self funded) law enforcement organization to stop cattle rustling. We've used that rather creatively.

Michigan, if I recall, at one time had something similar. But, most HOAs can be restructured to so something similar.
 
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Thanks for your reply Army Judge, Should I re-post/transfer this question under a different forum topic, such as Deeds?

I was hoping to hear replies from others too ( & perhaps a lawyer/attorney) who would know if there was a way to enforce the year round maintenance of a private road and the responsible road owners? We have funded only 65% of the home owners participation but the others ignore communications and don't pay a penny towards maintenance, however having equal access and benefits of using the private gravel road. Yet many of us do not own any of the private roadway itself. Basically we're maintaining someone else's private property to have access to our own homestead. A lot of indifference among these people and they could care less about the public safety associated with land and roads that cross their property. Our problem is one of indifference and people being resistant to change and pulling their fair share.

Hiring an attorney and discussing the situation, building a case and going to court for a decision makes sense only if there is a case-precedence regarding access granted via property deeds. Which is what I'm hoping to hear from similar experiences of others.

Thanks again for your ideas.
 
Thanks for your reply Army Judge, Should I re-post/transfer this question under a different forum topic, such as Deeds?

I was hoping to hear replies from others too ( & perhaps a lawyer/attorney) who would know if there was a way to enforce the year round maintenance of a private road and the responsible road owners? We have funded only 65% of the home owners participation but the others ignore communications and don't pay a penny towards maintenance, however having equal access and benefits of using the private gravel road. Yet many of us do not own any of the private roadway itself. Basically we're maintaining someone else's private property to have access to our own homestead. A lot of indifference among these people and they could care less about the public safety associated with land and roads that cross their property. Our problem is one of indifference and people being resistant to change and pulling their fair share.

Hiring an attorney and discussing the situation, building a case and going to court for a decision makes sense only if there is a case-precedence regarding access granted via property deeds. Which is what I'm hoping to hear from similar experiences of others.

Thanks again for your ideas.

We don't give legal advice. We discuss legal concepts and principles.
I am a lawyer.
But, we don't establish a lawyer-client relationship.
We stick to concepts and constructs.
It's better (and legal) for everyone.

No need to move the question.

Your 65% of the population paying their share is much higher than our income tax systems where 5-10% bear 80-85% of the costs.
Only a court can decree that everyone pays.
I suggest you start by inviting a lawyer to meet with the 2/3s of the owners that are contributing.
That's where you can learn what remedies you can attempt to seek.
Most lawyers would do that gratis or simply for community involvement.
Again, you also need to start a dialogue with your local elected officials.
Don't expect a cure rapidly, but the sooner you start, the closer you move to success.
 
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