In July 2014, Brent Brown (Brown) purchased an Ohio home for $250,000. Brown signed a 30 year conventional note and mortgage in the amount of $205,000 with 5/3 Bank at an interest rate of 5.6%. Brown's real estate taxes are $4,000.00 per year and homeowner's insurance is $1,250.00 per year. Brown was charged one point by 5/3 at closing but was not required to obtain private mortgage insurance. The closing costs were broken down as follows: title search: $500; owner's title insurance: $1,000; lender's title insurance: $600. In July 2016, Brown took out a home equity loan in the amount of $40,000 with Huntington Bank. In July 2018 , Brown's home was appraised at $270,000 and Brown owed $195,000 on the first mortgage and $36,000 on the home equity loan. In June 2019, a tax lien was filed by the Lucas County Auditor against his property.  In July 2019, Brown went into default on both loans and the property went into foreclosure.  In March 2020, the home appraised for $273,000. At the foreclosure sale, the property sold to an independent buyer (not a lender) for $230,000. At the time of the sheriff's sale, Lucas County was owed $8,563.00, the balance of the 5/3 Bank loan was $194,500, and the balance of the Huntington Bank loan was $34,500.

As a result of the foreclosure sale, 5/3's foreclosure fees totaled $3,200.00 and Huntington's foreclosure fees totaled $1,735.00.

QUESTION 1

Assuming Brown escrows for taxes and insurance, how much will Brown's first monthly payment be to 5/3 Bank?

QUESTION 2

How much will Brown pay in closing costs?

QUESTION 3

If 5/3 Bank sells Brown's note and mortgage to another lender, that is referred to as a(n):

1 points (Extra Credit)   

QUESTION 4

How much will Huntington Bank recover from the foreclosure sale?

QUESTION 5

If Brown's first payment to 5/3 Bank is late, how much will he pay as a late fee?    

QUESTION 6

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 7

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  and bars the borrower's equity of .

QUESTION 8

How much will the Lucas County Auditor recover for the tax lien?

1 points (Extra Credit)   

QUESTION 9

In July of 2018, how much equity does Brown have in this home?  

QUESTION 10

What percentage of the purchase price is Brown providing as a down payment? (Your answer must include the percentage sign after the number.)  

QUESTION 11

Over the life of the loan, how much interest will Brown pay to 5/3 Bank?

QUESTION 12

How much will Brown's title insurance cover? (Your answer should be in dollars and cents, not words.)

QUESTION 13

How much will Brown recover from the foreclosure sale?

QUESTION 14

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 15

What is the minimum bid at the foreclosure sale?

QUESTION 16

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

QUESTION 17

What is the maturity date for Brown's loan?

QUESTION 18

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