Fracking vs. Mortgages

By Dave Lucas

New Paltz, NY – Concerns are being raised that gas drilling could lower property values - those concerns have prompted an area Congressman to ask Federal and State officials to examine the mortgage rules governing gas drilling ... Hudson Valley Bureau Chief Dave Lucas reports.

The rush to drill has created a state of confusion over the mortgage rules governing gas drilling leases. If you have a gas lease, your neighbor has a gas lease or if you live in a community that has a lot of gas leases, environmentalists warn that it is likely you'll see the value of your property decrease and it may become almost impossible for you to sell your home. This is because almost all banks and insurance companies consider gas-leased land to be an unacceptable risk and will not give mortgages on or refinance properties that are leased or have gas wells.

The questions about gas leases attracted the attention of Congressman Maurice Hinchey, who was moved to send letters to government officials asking they look deeper into existing rules and regulations.

Hinchey co-authored FRAC Act, which would mandate public disclosure of chemicals used in frack fluid and allow the U.S. Environmental Protection Agency to regulate fracking activities under the Safe Drinking Water Act.

Communities are already seeing a softening of home sales as buyers are holding off making any investment until the issue of fracking is resolved. Realtors based Ulster and Westchester say those counties are big "second home communities" where people looking to get away from the NYC metropolitan area are looking for clean air and water - to get away from pollution - they say if fracking is allowed to begin in New York State it would impact the regions housing market.