Types of Mortgages - What do these mean?

17 Replies

Below is mortgage history data for a property:

The property was sold in 2004 and purchased by current owner for $248,000. It looks like there was a mortgage for $173,600. It looks like the owner put down a 30% down payment and borrowed the rest.

What does the refinancing column for 2006 mean? There are two mortgage amounts, a "Refi" for $25,000 and a "Seller/Carry Back" for $30,000. What do these mean? Can the total amount of equity be determined from these numbers?

seller sold sub too both the first and second then took back a third in the form of a private loan .. thats how i would read that.. 

@Jon DeCamp , why should the type of mortgage/s owed by the "owner" matter to you?

If you're thinking of buying, surely the only thing that matters is: what's it worth to you?

Always make it clear that your Offer is only valid if the sale comes with clear Title! My 2c.

I’m looking to see if there’s not enough equity to do a wholesale deal.

@Jay Hinrichs could you unpack your response a little for me? What do you mean “sold sub too”  and “took back a third”? You’re talking to a 2nd  grader here.

Hint: there's likely not enough equity. Perhaps, 2nd graders shouldn't be wholesalers?...

very helpful reply. 

@Brent Coombs  I thought this is supposed to be a community where people help each other not post snide comments. You feel good about yourself?

@Jon DeCamp I really can't understand what Jay is trying to say either. Is this all the information you could pull on this property? I assume this is from the county clerk's mortgage lien records?

@Jon DeCamp , you may be better off searching through property tax records and mortgage records to get a better idea of what exactly these liens are. The mortgage had to be publicly recorded, so you should be able to find it on the county clerks database. 

There is no good way to tell what is still owed. I read that as they originated a $173,600 mortgage when they bought the house and the seller held $30,000 note. The Refi in 2006 could be a lot of things. They may have left off a 0 and that is really a $250,000 loan they refinanced based on a higher appraised value. It could be a small home equity loan. I would do a search on the county auditor site. Anything you find won't give you a current balance, but it will give you the balance at that time.

I would be more concerned with approaching them and getting them to agree to your deal than about figuring out what they might owe. If they don't want to sell who cares how much they owe on the house. Once you start talking numbers you can probably get them to tell you how much they still owe even if they don't mention it directly.

Originally posted by @Jon DeCamp :

@Brent Coombs I thought this is supposed to be a community where people help each other not post snide comments. You feel good about yourself?

 Yes. Thanks  for asking. [No offence intended, but, newbie Wholesalers need a thick skin on BP].

@Brent Coombs I’m not following your logic: I put up a question about something I don’t understand in a forum that exists expressly for “like minded people” (supposedly) to help each other understand things better and you come up with some disingenuous apology as if you’re some frat boy hazing a pledge and then you respond smugly when I call you out. I would think with the number of posts and votes (whatever they’re for) under your belt you’d set an example and bring people up instead of ridiculing them for not knowing something. Please keep your “help” to yourself. I’m sure there’s plenty of others who can help in a more positive manner. 

@Zach Lemke @Josh Engelhart Thanks for your input. This is an old lead who I made an offer to awhile back. I happened to discover the info I initially started this thread with and wondered what it meant or if there was a way to interpret it. As you say, motivation is more important. 

@Jon DeCamp Hey Jon, BP gets more interesting as you post more but I advise you not to engage in negativity [silence is much more powerful].

Now, to your question, I think the Seller REFI'd out from the Downey S&L mortgage to BoA, and then appears to have taken a 30k carry back as a loan. 

This is a very interesting one. Are there more columns and rows in this report? 

Thanks! - Ola 

Since there is no date on the $30,000 seller held, it is likely out of sequence there.  My best guess is the $30,000 was a purchase money 2nd recorded in 2004 and paid off with the 2006 BoA $25,000 loan.

Do you not have access to land records to obtain releases?

@Ola Dantis Thanks for the advice. This is all the info on the MLS for this property. @Tom Gimer Makes sense. Thanks for responding.

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