Encroachment of property/Easement

[Brian Rodriguez]

Hey! currently looking to close on a property, and the structure of the property is encroaching on the neighbors lot by 6.3ft. We've contacted the neighbor and he's agreed to draw up an easement to resolve the issue. The lender we have is saying it's impossible to lend on the home if a piece of the structure itself encroaches on the neighbors lot, even if there is an easement in place. 

I was thinking it might just be a case-by-case basis with lenders and easements. If there's an easement in place I don't see why at least some lenders would lend on this. Anybody have experience with this or any insight?  

[Jerry Padilla]

@Brian Rodriguez

Here are the guidelines for Freddie Mac in this scenario.  The lender's legal team, underwriting, appraiser, and title company would have to agree with the terms below. 

Any exception not set forth above in Sections 4702.4(a) through 4702.4(l) is acceptable only if all of the following conditions are met:

1. 1. The subject of the exception must not interfere with the use and enjoyment of any                  present or proposed improvements on the Mortgaged Premises or with the use and                  enjoyment of the balance of the Mortgaged Premises not occupied by improvements
2. 2. The subject of the exception must not affect the marketability of the Mortgaged Premises
3. 3. The subject of the exception must have no or minimal effect on the value of the                      Mortgaged Premises
4. 4. The subject of the exception must be acceptable to the MI if the Mortgage is insured
5. 5. The subject of the exception must be commonly acceptable to private institutional                  Mortgage investors in the area where the Mortgaged Premises is located

The Seller shall warrant that all exceptions to the title insurance policy or to the attorney's opinion of title are permissible under this section. Freddie Mac will not issue any letters addressing the acceptability of particular exceptions nor waivers of the above requirements.

https://guide.freddiemac.com/app/guide/section/4702.4#:~:tex....