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QUESTION 1

In March 2017, Barbara Butler (Butler) purchased an Ohio home for $250,000. Butler signed a 30 year conventional note and mortgage in the amount of $220,000 with 5/3 Bank at an interest rate of 3.2%. Butler's real estate taxes are $4,500 and homeowner's insurance policy is $1,300 but the lender does not require Butler to escrow for taxes and insurance. Butler was charged two points by the lender at closing. The closing costs were broken down as follows: title search: $650; owner's title insurance: $1,200; lender's title insurance: $750.

In April, 2018, Butler took out a second mortgage in the amount of $25,000 with PNC Bank. In September, 2020, the home appraised for $260,000 and Butler owed $202,000 on the first mortgage and $23,000 on the second mortgage. In November, 2020, a judgment lien was filed against the property.In January, 2021, Butler went into default on both loans and the property went into foreclosure.In April, 2021, the home appraised for $264,000. At the foreclosure sale, the property sold to an independent buyer (not a lender) for $241,000. At the time of the foreclosure sale, Butler owed $75,000 towards the judgment lein, $194,000 to 5/3 Bank, and $23,000 to PNC Bank.

For every answer that is a dollar amount, your answer must include a dollar sign, appropriate commas and cents. (Ex: $1,000.00)

At closing, how much does Butler pay 5/3 Bank in points?

At closing, what was the Borrower's monthly payment?

At closing, if Butler chose to escrow for taxes and insurance, how much would her payment be?

Assuming the parties follow Lucas County custom, how much will Butler pay in closing costs?

In September of 2020, how much equity does Butler have in her home?

What is the minimum bid at the foreclosure sale?

How much will be recovered for the judgment lien?

How much will 5/3 Bank recover from the foreclosure sale?

How much will PNC Bank recover from the foreclosure sale?

Question 2:

Description

Use the following fact pattern to answer the fill-in-the-blank questions. It is extremely important to note that to receive credit, every answer (if applicable) MUST include a dollar sign, appropriate commas, and cents. (Ex: $1,000.00)

Instructions

In June of 2017, Brent Brown (Brown) signed a purchase agreement for an Ohio home in the amount of $325,000.00. The closing for Brown's purchase took place on July 28, 2017 and the lender was 5/3 Bank. At the closing, Brown signed a 30-year conventional promissory note and mortgage in the amount of $276,250.00. Brown's payment to 5/3 Bank is due on the 1st of every month and the interest rate is 3.65%. Brown's real estate taxes are $5,200.00 per year and homeowner's insurance is $1,650.00 per year. Brown was charged two points by 5/3 at closing but was not required to obtain private mortgage insurance. The costs for the title search and insurance were broken down as follows: title search: $600; owner's title insurance: $1,100; lender's title insurance: $1,625. In July 2019, Brown took out a second mortgage with Huntington Bank in the amount of $55,000. In July 2021, Brown's home was appraised at $345,000 and Brown owed $270,000 on the first mortgage and $49,000 on the second mortgage. In September of 2021, Cook Contractors filed a judgment lien against Brown's property in the amount of $18,000. In June 2022, a tax lien was filed by the Lucas County Auditor against his property. In July 2022, Brown went into default on both loans and the property went into foreclosure.In March 2023, the home appraised for $348,000. At the foreclosure sale, the property sold to an independent buyer (not the lender) for $265,000. At the time of the sheriff's sale, Cook Contractors was owed $18,000, Lucas County was owed $11,465.00 for the tax lien, the balance of the 5/3 Bank loan was $194,500, and the balance of the Huntington Bank loan was $48,500. QUESTION 1 What percentage of the purchase price is Brown financing? (Your answer must include the percentage sign after the number.) QUESTION 2 At closing, how much does Brown pay 5/3 Bank in points? QUESTION 3 How much will Brown pay towards the cost of the title search and insurance? QUESTION 4 How much will Brown's title insurance cover? (Your answer should be in dollars and cents, not words.) QUESTION 5 On what date is Brown's first loan payment due to 5/3 Bank? (Your answer must be in the following format: January 1, 2022) QUESTION 6 Assuming Brown escrows for taxes and insurance, how much will Brown's first monthly payment be to 5/3 Bank? QUESTION 7 Over the life of the loan, how much interest will Brown pay to 5/3 Bank? QUESTION 8 What is the maturity date for Brown's loan? Your answer must be in the following format: January 1, 2022 QUESTION 9 If 5/3 Bank sells Brown's note and mortgage to another lender, that is referred to as a(n): QUESTION 10 If Brown's first payment to 5/3 Bank is late, how much will he pay as a late fee? QUESTION 11 In July of 2021, how much equity does Brown have in this home? QUESTION 12 The first step in the judicial foreclosure process is to order the [A]. This document will list the owner of the property and anyone else who claims an interest in the real estate. QUESTION 13 What is the minimum bid at the foreclosure sale? QUESTION 14 How much will the Lucas County Auditor recover for the tax lien? QUESTION 15 How much will 5/3 Bank recover from the foreclosure sale? QUESTION 16 How much will Huntington Bank recover from the foreclosure sale? QUESTION 17 How much will Cook Contractors recover from the foreclosure sale? QUESTION 18 The Order is the last document signed by the judge in the judicial foreclosure process. This order confirms the sale, orders the sheriff's department to prepare a and bars Brown's equity of .