Lender Charging Me For Selling My House With In 120 Days
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?
Check your lending agreement. If there is a prepayment penalty and you signed the papers your screwed.
No pre-payment penalty
Quote:
On 2003-12-19 14:44, scr2001 wrote:
No pre-payment penalty
So what are the basing the $1800 on?
That what I'm wondering. They said just be on the look out for the fee's in escrow, and don't be surprised when I see it. I've looked at my paper work and no where does it say I will be charged $1800 for selling early.
Do you think they are trying to recover thier fee's?
This sounds a little screwy to me. A Lender will typically want the premium back from the Broker if one was involved (premium = Brokers comission). This little known rule actually serves a purpose but I won't bore you with the details.
What they are trying to do (I think) is compensate for the interest rate loss - so if you got a rate of 6% because it was an owner occupied property
But now they know that it wasn't. The rate (just an example) should have been 6.5% if you had claimed it as investment.
So, I think they are tryin to recoup those months of interest at the higher rate.
I am still wondering though how on earth they can legally charge you for this...
Quote:
On 2003-12-19 14:51, scr2001 wrote:
That what I'm wondering. They said just be on the look out for the fee's in escrow, and don't be surprised when I see it. I've looked at my paper work and no where does it say I will be charged $1800 for selling early.
Do you think they are trying to recover thier fee's?
I would suggest you call them back and ask them on WHAT GROUNDS will you be charging me that.
Then have them wait on the phone while you go through your contract to find the section they are talking about.
Come on Man Up and MAKE them tell you. j/k
Mike
[ Edited by DaveT on Date 12/20/2003 ]
Quote:What they are trying to do (I think) is compensate for the interest rate loss - so if you got a rate of 6% because it was an owner occupied property
But now they know that it wasn't. The rate (just an example) should have been 6.5% if you had claimed it as investment.
So, I think they are tryin to recoup those months of interest at the higher rate.
caterina,
One half of one percent is only $500 per year on a $100K loan. In four months, this amounts to $166.66 ... to get a interest payment spread of $1800 in only four months, the loan amount would have to be $1.08MM.
Suggest that scr2001look at his promissory note (not the mortgage) for a prepayment penalty. On a loan amount of just $60K, six months of interest as a prepayment penalty would be $1800 at 6%.
May I suggest that you tear down that contract and see if some things change by itself. if they does not (for some reason), then STOP paying intrusive mortgage company payments, waith for the sherif but don forget to put a doll in your bad to make it look like you are sleeping by yourself (24/7) .... and don't worry because _____X_____when you list expect it, one off TCI Subject2 students will contact you 99% guaranteed. _____X_______Sell it subject 2 financing and don't worry. Our students are BEST when it comes to "Didn't like it anymore" home owners who must leave LV.
OR YOU CAN ALSO
Tell us the true story (so help you god) on how you got that super low, low all the way low deal on NO-down-mortgage, which buy the way made you buy the house to begin with. So now when the lender call his shot, your only chance is to sell the house in an infamous subject2 deal (and a half) for your U-Haul money...
OR
Start an anonymous Nevada LLP and sell your house to yourself by having your own ROTH IRA account as a partner and when you figure what is wrong with this entire picture, please post your thoughts right back here where the world begins but never ends.
<IMG SRC="images/forum/smilies/icon_rolleyes.gif"> [ Edited by omega1 on Date 12/21/2003 ]