It seems that I have been running into more than my share of Well and Septic issues, the latest one involves the town of Marlborough, which recently installed public sewers throughout most of the town. As a result the town has assessed homeowners with a sewer assessment to pay for the work.
What tends to happen in small rural towns her in Connecticut is that when the town installs the sewers, they do an assessment for tying the property into the sewer system. In the case of Marlborough that assessment is $12,060.00 per property. In order to encourage homeowners to tie into the sewer system they provide for financing for 20 years, at a 2% with an annual payment of $603.00.
The issue then becomes whether this will be considered a lien or an assessment like those assessed on Condo's for major repairs, at time of sale. If it is considered a lien, then it will have to be paid off no later than the time of the Closing. But if considered an assessment then the new buyer maybe able to assume the assessment.
After researching Fannie Mae and FHA Guidelines the guideline is similar for both:
As long as the assessment is viewed and accepted by the town as an assessment and not a lien, then Fannie Mae and FHA will consider it as an assessment also. The new Buyer can then assume the assessment as long as they qualify for the payment, and the Seller is current on all assessment payments. If the Seller is not current then on the assessment payments, then the Seller has to bring the payments current prior to the Closing.
The only Well and Septic issue that I have not run into lately is shared Wells and Septics, but I am sure that I will soon run into that as well.
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Who To Call For Your Mortgage Needs In Connecticut:
George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.
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