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Updated about 10 years ago,

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1,451
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461
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Sam Leon
  • Investor
  • Fort Lauderdale, FL
461
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1,451
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How to prove a property is free and clear?

Sam Leon
  • Investor
  • Fort Lauderdale, FL
Posted

I have a property I am getting financing on, and I just got the loan commitment but with a few contingencies.

One of the contingencies is for me to submit proof that I own two other income producing properties free and clear.

Now one of those properties I had a mortgage on, and paid it off early.  So for that one I can submit a satisfaction of mortgage letter and that should be sufficient.

Another property I paid cash on, never had a mortgage, and I am scratching my head as to how I can prove it's free and clear.  I don't see anything I have that indicates it as such.  Now the settlement statement does say "CASH FROM BORROWER" and "CASH TO SELLER" so I am wondering if that's good enough, or is there some other document I am not thinking of.

Also curious is why they singled out two properties and didn't ask me for proof on other owned properties, did they do a search and missed some things?  Or they are not done?  But if they issued a loan commitment letter already with those specific contingencies, then I guess they are done.  Should I even bother to fully disclose the rest of my assets or just leave it be?

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