Federal Eminent Domain Blog

Mortgage Priorities in Eminent Domain

The attached note by a writer to a local paper notes the difficulties the fee owner was having because payments from the oil company was first utilized to pay down the mortgage.

Each mortgage document contains its own requirements to priority of payment. However, most mortgages state when a property is diminished in value, payment of just compensation for the diminution first goes to the lender except in certain circumstances where money is spent to cure the damage to the property.


I recently attended the Forced Fracking Pooling meeting held by the N.C. Mining and Energy Commission. Lawyers from the real estate and banking industry were present.

For those who have signed or are about to sign a lease, they need to alert their lending company.

It turns out that the banks will be first in line to share any commission that falls your way since they want to guarantee payment before your property values decline.

Real estate agents need to educate themselves on split estates and whether a potential buyer can ever get a mortgage near a natural gas-leased property.

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