I looked at a few of these recently built attached properties, at random. What struck me is: All of the ones I looked at had two mortgages on them. Yes two!
Property, 353007007xxxx was purchased 8/2006 for $495,000. The first mortgage was for $343,000 and the 2nd was $98,000. Total Mortgage $441,000 (about 10% down) This was not a homestead. The person bought another property 013131032xxxx on 2/15/2007. The price was $435,000. The first mortgage was for $348,000 and the second was for $87,000. Total of mortgage: $435.000. Nothing down?11/2006 there was a $440,000 purchase of 353007003xxxx. Again, two mortgages one for $316,000 and the second (a first lien balloon) was for $95,000. The total mortgage was $395,000 which means the down payment was $45,000 (10%).
The third sale was on 11/2005, 353007003xxxx. Paid $464,999 and took out two mortgages $352,000 and the second for $66,000. For total mortgage of $418,000 About 10% down.
And down south:
Property 107920014xxxx sold 9/2006 sale for $380,286, they have two mortgages: one for $304,229 and a second (the same day) for $57,000 which amounts to a $19,000 down payment: 5%.
Since when is it commonplace to take out two mortgages on a property? If I had more time I would be able to research more and spot a trend. But these second mortgages must have higher payments. Something is up.
P.S. Is there a mortgage person out there that can give us a ballpark figure of what they people pay a month in payments?
11 comments:
Hi,
Very good article as usual. I love reading your blog and do so everyday.
I have one question for you, is there any way to search the public records online?
Thank for this great blog.
Thanks for showing me how to search the public records, very much appreciated. People have two mortgages to esacpe the PMI charge that results when you don't have 20% to put down. When people advertise 100% financing this is what they are talking about. and to the person above who wanted to search the publis records online two sites
www.miami-dade.gov to search property records and www.miami-dadeclerk.com to search mortgages
Hi,
I'm thinking about buying a single family house (SFH) and was thinking about doing something similar (get two mortgage).
I own a townhouse that I plan to sell so I was thinkng to get a second mortgage in the amount of the equity I hope will get from my current property. This will allow me to buy the SFH before closing the townhouse and be able to payoff the second mortgage of the SFH.
Don't know if it's a good idea yet though , any comments?
Cheers.
Thank Mikey for the links.
I do use miamidade.gov to look property info. I did not know about the clerk site though.
Another question.
Where can I search if a given property has any lien?
Thanks,
Anon,
Why the rush to buy the SFH? What happends if you can't sell the townhouse? Can you carry 2 mortgages? oh wait I mean 3. It isn't easy to sell in this market why don't you put a contingency in your contract to buy the SFH that its dependent on selling your townhouse
Mikey, is forgoing PMI insurance risky for these people? Also can you give me a ballpark on their payments?
I had a typo
reposted:
liens are recorded on Sun Biz and also on the clerk site.
person buying before you sell: Risky in this market. I did it and ended up selling the new one.
When you are on the county clerk site, you can often tell about criminal info by nosing around, lawsuits, marriages and divorces,,,,just be aware that some names may be the same ...yet 2 very different people, so don't jump to conclusions.
@Anonymous 4:21pm:
Property Appraiser Search
Property Tax Information
It has been common practice for many years now in hot markets on the east and west coast for two mortgages to be taken out, or one with flex terms. Again this is because the market is not working - think of the Dutch Tulip Trade.
Post a Comment