All Forum Posts by: Mehgan Moore

Trying to purchase a small out of state MHP and getting financing from a small local bank, in Ohio.    The bank is has come back with this info; I am wondering if there is any legal stance I could have with pushing back on the bank and not agreeing to this.  I may just need to find a new lender.

"The need for the borrower to sign in Ohio solely concerns cognovit enforceability. An Ohio court has the power to enforce the cognovit terms of a note only where one of the note’s makers lives or signed it.

The State of Ohio allows a cognovit language on a commercial promissory note: I have copied the language from the note as well for your review.

CONFESSION OF JUDGMENT: If I default, I authorize an attorney to appear in a court of record and confess judgment against me in favor of you. The confession of judgment may be without process and for any amount due on the Loan including collection costs and reasonable attorneys’ fees. This is in addition to other remedies.

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FOR THIS NOTICE “YOU” MEANS THE EACH BORROWER.

WARNING: BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAULURE ON HIS PART TO COMPLY WITH THE AGREEMENT OR ANY OTHER CAUSE.

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The banks in Ohio use this provision in the note to begin legal action. Sutton Bank’s policy is to require all loans be executed in the State of Ohio to protect the cognovit feature on the note. "

@Brandon Sturgill I would live to take a look at that document, considering you are in Ohio. Thanks!

@Caroline Gerardo

This has been said prior to me providing any ID or even really starting the process. I don't want to continue working with them if this will be an issue.

@Jay Hinrichs. Thanks thisbis exactly what I was think it should be.

@Zeke Liston Sutton Bank. It's a smaller bank.

I am looking to purchase an investment property in Ohio and the local lender there is saying I must fly to Ohio to sign the promissory note in person at their bank. This seems really odd to me. I work in the mortgage industry and have never fun into this before. With technology and Covid I feel this should not be required. Had anyone else ran into this before?

I was told by a broker to submit a resume along with my offer for seller financing. This is the first time doing seller financing and am wondering what should be included in such resume?

Ment the numbers on the current purchase are tight as far as qualifying *

I am in the middle if a conventional purchase with a partner and the number seem to be tight as far as quality.

I found a Great lead on another multiplex and want to try and find a way to purchase it. I know conventional financing is off the table as well as seller carryback. I am reaching out to possible new partners But I want to know more about private lenders. Are there private lending companies out there were one can simply apply? Do I need to track them down via personal network?

We are currently living in a triplex and renovating our units bathroom. The original cast iron tub is in place and would look great with the classic retro reno we are doing. However the tub has already been resurfaced once and is peeling. My question is, would it be worth looking into a bath liner and keeping the existing original cast iron tub or replace it with a cheaper option such as steel or fiberglass? We plan on doing white subway tile all the way around the tub.

Thanks for any feedback!