All Forum Posts by: Haiyang A.

I am looking to do a cash-out refinance for a rental property which is located in the Cincinnati area. The quote I'm getting from a local mortgage broker is as follows: 30 year fixed conventional financing, 75% LTV, 7.5% rate with $8015 closing costs. I know that the Fed has increased the rate dramatically over the past year and half, but the closing cost, in my opinion, is really a bit beyond my expectation. I know the mortgage broker will need to make a living and the situation right now is not particularly conducive for doing business, but is it what is considered "normal" in this environment?

P.S. The closing costs he's giving me keep going up for the past 10 days. I looked at the quote he gave back in 8/25, it was at $4500 with 7.875%.

3 Votes

Cincinnati, Ohio

@Frank Rolfe

New to this space. What are some of the rationales to reason with the seller that only half of completed NOI will be used for valuation given that capex are accounted for?

0 Votes

Originally posted by @Colin G Murphy:

I think your question has been answered @Haiyang A. but if two mortgages are recorded on the same date, then the one with the earliest page number is senior. e.g. Mortgage A recorded on Book 36/Page 1200 and Mortgage B recorded on Book 36 / Page 1201. Mortgage A was recorded first and is therefore the senior lien.

Also just FYI: if there are two mortgages spaced apart, the newer one is larger and the older one wasn´t satisfied, then a subordination agreement might have been filed which flips the seniority. You´ll see those on the public records / title search.

If you are not experienced at doing title searches, my advice is to find a local attorney or title agent who will take a quick look for a nominal fee before you bid on the property.

Thanks for the tip!

0 Votes

Originally posted by @Chris Seveney:

@Haiyang A.

They would have a recording number on it but assume the lower amount is in 2nd position - also check if the one you are looking at is a traditional mortgage or lien of credit

Thanks for the tip! There are quite a few times of transfer from banks to banks.

0 Votes

Originally posted by @Steve Morris:

"The current foreclosing mortgage appears to be of lesser amount ($20K vs. $90K for the other one)."

That seems weird, are you sure. Subordinate debt just can't foreclose like that since it has to honor the senior debt. If they force foreclosure, lender one gets paid in full before 2nd sees a penny.

I guess he took a loan and then a second from a diff lender on the same day?

Thanks for the information. The second note was indeed from a different lender, recorded on the same day.

0 Votes

Originally posted by @Chad U.:

Originally posted by @Haiyang A.:

I was looking at an upcoming bank foreclosure and noticed that the original owner had two mortgages recorded with the same date and time. The current foreclosing mortgage appears to be of lesser amount ($20K vs. $90K for the other one). Because they have the exact same recorded date and time per the local recorder’s office, how can we determine the seniority of the lien?

Check the instrument number or book/page number of both, they should be in sequential order and will tell you the position. That with the lower number will have seniority. If it's the 20K will most likely be in 2nd position, it will be subject to the 1st.

And yes in OH bidding starts at 2/3 of appraised value, but if it doesn't sell then will be rescheduled again with no bid minimum.

That's a good tip! The 20K loan does have a higher number, suggesting that it's in the second position. It looks like there will be a second round of auction for this one.

0 Votes

After posting this, I double-checked it again, and found that actually there is a tiny bit of difference in terms of the recorded time. The larger amount (i.e., $90K loan) was recorded 20 seconds earlier. Does this mean that it is the senior lien, and the current foreclosing one is actually a second lien, and whoever buy that needs to also pay off the first?

What also makes this situation strange is that the county requires bidding to start at 2/3 of the appraised value (which is close to market value). Now with the second lien to be sold at least 2/3 of the appraised value, and there is a first to be paid off on top of this, there is no point to even further analyze this, or there is something else that I am missing?

Thanks in advance!

1 Vote

0 Votes

Hi, I'm looking for a mortgage broker for refinancing primary and investment properties in Cincinnati Ohio. Any recommendations are appreciated!

1 Vote

Originally posted by @Wayne Brooks:

@Haiyang A. So you want to take a non deductible expense and expense it, to lower your taxable income (have your cake).....but not have it lower your income for credit qualification purposes (eat your cake too).....good luck.

I didn't know they are nondeductible.

0 Votes

All Forum Posts by: Haiyang A.

Haiyang A. has started 25 posts and replied 69 times.

Post: $8000 closing costs for cash-out refi of a rental property in Cincinnati

Post: MHP value add negotiations

Post: Seniority between two mortgages recorded at the same date/time

Post: Seniority between two mortgages recorded at the same date/time

Post: Seniority between two mortgages recorded at the same date/time

Post: Seniority between two mortgages recorded at the same date/time

Post: Seniority between two mortgages recorded at the same date/time

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Post: Need Mortgage Broker for Cincinnati Market

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