Prepayment Fee

[msoulia]

What is the name of your state? Mass

We recently sold our home in Haverhill, Ma. We signed the papers and money changed hand. Now my loan holder, World Savings, is stating I owe a prepayment fee.

We had to sell our home due to me being out of work since May 05. We owe the IRS approximatly $33,000.00 in taxes, I got screwed by my business partner, had to move out of state to look for work, NY state, and we can't catch a break for our lives Is there any way of getting out of paying the prepayment fee of $5,897.31?

Thank you!
Mike

[nextwife]

AS we cannot read the particulars of your prepayment clause, we really can't know. Sometimes a lender will agree to waive a prepay fee if you have the new buyers finance their loan through them. Another way to avoid a prepay is to close within a certain window of a rate adjustment - some mortgages contain language that allow waiver of prepayment if the loan is paid off within a thirty day window of a rate adjustment.

Another way to avoid one is to not obtain a mortgage that contains a prepay.

I doubt there is anything that can be done after the fact. No doubt you were aware when you chose this mortgage that it was subject to a prepay.