can the bank charge you with a large penalty fee for selling your house off entirly before the mortgage is up?
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can the bank charge you with a large penalty fee for selling your house off entirly before the mortgage is up?
Asked on May 26, 2009 under Real Estate Law, North Carolina
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
I do not think I have all the information here to understand your question. However, i will do the best i can. You may have a mortgage with a prepayment penalty. This means that you agreed when you signed on the loan that you would pay the bank a fee if you attempted to pay the mortgage loan early. If you had a prepay clause in your note, then this may explain the reason for the fee. However, i would need to see the loan agreement to fully understand why you are being charged. I suggest calling a lawyer or the lawyer who did the closing for you to help you. To save money you could call your broker who can tell you what the mortgage says.
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