Lender Charging Me For Selling My House With In 120 Days? HUH
I posted this in another section, but I think it's the wrong one.
I just bought a house back in Nov. as an Owner Ocupant. I didn't move in because I didn't like the house anymore, and because the loan company was very intrusive. They wanted to inspect the house 30 days after I moved to make sure I lived thier. I sold it last week and it will close on Jan 15. Now the loan company is telling me they are going to charge me $1800.00 because I sold it so fast.
Is this commen? Where; in my paper work should I look for this clause?
Sounds like your mortgage contained a prepayment penalty. Some mortgages contain a provision which allows the lender to collect a certain number of months worth of interest in the event the property is sold or refinanced within a certain period of time. From your post it sounds like this is the case. Review your documents and confirm this.
Even though you think you posted your question in the wrong forum, the answers you received were all on track.
You won't get different answers than you have already received.
Check your documentation for the Prepay Penalty. That is the only thing I can see would be applicable. I make the assumption that you are paying the lst mortgage off at time of sale. If this is not the case please advise. As near as I can remember there is no real penalty they can charge if they accellerate the note because you did not occupy the house. Now, look at your documents at time of prior purchase I would like to see those but only if they are not just charging a Prepayment Penalty.
The thinking behind this is that they spent all that time and money setting up your mortgage for future service, etc. etc. and now you are paying it off so they should get something for their trouble. Of course you and I know they already got it in the loan fees, processing etc.
there is one thing more it could be and only you dear sir have the answer. If you are leaving the mortgage on at time of this new sale and the new buyer is assuming it, it might be an assumption fee. Thats under the Due On Sale Clause. I do not even think an assumption fee is spelled out any more. I guess they feel this is part of some new bargain with the new owner. Very interesting.
I await with baited breath your posting. Is it a Prepay or is it Not. Now that is the question.
On One Foot. Lucius