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    cheekyjonesy's Avatar
    cheekyjonesy Posts: 1, Reputation: 1
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    #1

    Jul 6, 2006, 04:06 PM
    Redemption Penalty
    Hi there,

    I'm looking for some advice regarding my mortgage and a redemption penalty I will be facing due to an imminent change in property et.

    My hands are tied it seems and I cannot hold of the move without losing the sale on the house.

    There is one final payment left on my current mortgage (before it would have been due to be readjusted) - due in two weeks! - but my mortgage company don't seem to want to budge on waiving the fee partial or in full.

    Are they being unreasonable? - or are they charging me because they just can? Is there an angle I can push as I plan to try and take the matter further but would like some advice before taking this action.

    I'd really appreciate any advice out there...

    Many thanks in advance
    Marcus:confused:
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Jul 6, 2006, 05:32 PM
    They have their set rules and time frame, they have no reason to do it, why? They don't know you, they are not your local bank, and if you are selling the house they are going to lose the future interest they would have made on the loan.

    A manager may be able to wave it ( or he may not be) depends on the company rules

    And in the end it is their rules, I would have assumed you would have worked the fee into the selling house, since you had it listed during this period.
    Dr D's Avatar
    Dr D Posts: 698, Reputation: 127
    Senior Member
    		  
    #3

    Jul 7, 2006, 09:03 AM
    You have a Prepayment Penalty on your mortgage. From what you have stated, it is probably a "hard" Prepayment Penalty as opposed to a "soft" one which would allow you to sell the home without penalty. Check your original loan documents. The penalty will most likely be 6 months interest on 80% of your loan. Situations such as this make a strong case for reading your loan documents before signing them.
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