underwriter requested "proof" of free & clear ownership ???

[Derek Sperzel]

So we're trying to complete a cash-out refi on a rental we bought and rehabbed last year (BRRRR), and everything was going well until today. I got an email from the Broker, and the underwriter is asking for documentation on all investment properties proving we own them free & clear (a couple are mortgaged, but they know that). The underwriter suggested a letter from our insurance agent should suffice, but they have no idea if we have loans on certain properties, unless they collect policy premiums from escrow. I don't understand what I could provide to the underwriter to satisfy this request, and any thoughts would be much appreciated.

[Eric Veronica]

@Derek Sperzel The declaration pages of your insurance should answer that question because if there was a mortgage the lender’s mortgagee clause should be listed. 

In my scenario the borrower had no insurance either but that’s another story for another day.  

Another way to prove this is schedule E of personal tax returns or form 8825 of s-corp tax returns.  If the rentals are free and clear then Schedule E or form 8825  should also confirm that there is no mortgage because there would be no interest deduction.