Mortgage Clauses For PrePayment Penalty
I have a subject to where the payoff shows a prepayment penalty. I have looked in the 21 page mortgage and it is not in the mortgage. Guess I am use to seeing them as a special RIDER in the mortgage. The loan is only 1 year old. Is it possible that it is only specified in the note - which of course was not recorded.
Thanks
Brenda
It is addressed in the note, deed of trust and a rider if you are assessed a penalty. The riders do get recorded so its weird if its not there.
Just call the lender and have them fax the rider to you.
Just a big surprise on a house I took Subject To.
Lassitermarketing,
Do you find it normal for prepayment to be addressed in the note and mortgage?
I often see a Prepayment Rider that amends the Mortgage, Deed of Trust, or Security Deed. Which is exactly what it should do, as then it’s recorded against the property (as you point out). But it’s not referenced in any detail in the note or the mortgage. Or, it’s been completely X-ed out.
Just curious.
Thanks!
I have always seen them references in the mortage and then attached at the end and the mortgage and rider(s) are recorded as a single document. This is also true of balloon riders. But this one has me a bit stumped as the prepayment is not recorded and not referenced in the mortgage.
is the prepayment penalty box check on the Mortgage? if so, the title company just missed recording it. If not, ask your sellers for copies of their loan docs - it should show on the Note or as a Rider to the Note and also on the TIL.
Ther eis no prepayment box to check. What is TIL?
Brenda