Prepayment penalty

[eternalhope]

[font=Arial Black]I bought a home in St Augustine Fl, January '05. We moved from Chicago because we wanted to be near my inlaws, who are up in age. Unfortunately the school system here is horrible. I should have remembered how bad, because I grew up in Orlando. To make a long story short, the broker I used didn't inform me of a 2 year, 5% prepayment penalty. The 5% is on the purchase price. We signed the papers because we already stayed at the Hampton for a week, with me driving my kids to school every day and the moving truck would arrive after the closing.

I had complained to my broker about how I had lost money on a refinance prepayment penalty. But he put it to me even worse. Since I didn't know until closing and I wasn't fully informed or given any other choices, do I have any chance of reducing or deleting the penalty?/

[JETX]

Originally Posted by eternalhope

do I have any chance of reducing or deleting the penalty?/

Depends. What exactly did your broker say when you read the agreements and asked him about the prepayment penalty that was in it??

[eternalhope]

My broker was suppose to go over the contract with me before we closed. The only contract I saw before the meeting was the realtor contract. My broker was at a meeting during my closing. They also made the 1st payment due in 15 not 30 days, which I also was unaware of until closing.

[JETX]

Originally Posted by eternalhope

My broker was suppose to go over the contract with me before we closed. The only contract I saw before the meeting was the realtor contract. My broker was at a meeting during my closing. They also made the 1st payment due in 15 not 30 days, which I also was unaware of until closing.

Okay, lets play this game your way...
Why did you sign the papers with the prepayment penalty in it??
And why did you sign the papers with the 1st payment "due in 15 not 30 days"??

[eternalhope]

ok....
1) I must be stupid
2) We had been living in a hotel for 2 weeks because our closing was pushed back and the expense and frustration level had topped out.
3) Our seller had already closed on her house and needed her cash. She was nice enough to push the closing out.
4)The 15 day thing was a surprise but we could handle it.
5) Our movers were scheduled to arrive, more expense to store longer.
6) We didn't know that my mother-in-law would be diagnosed with lung cancer and that we would lose her so fast.
6) Being unfamiliar with Florida law, I thought it could possibly be negotiated.

Besides the being stupid part, do I have any recourse?

Thanks,
Debi

[HomeGuru]

No you don't,,,,,,,,,,

[JETX]

Originally Posted by eternalhope

Besides the being stupid part, do I have any recourse?

Based on your post, unlikely.
You can certainly take all your documents to a local attorney who might be able to find something in them... but again, unlikely.

[HomeGuru]

move on or prove predatory lending practice.

[eternalhope]

THANKS TO BOTH OF YOU...
Hindsight is 20 20

better to become wiser from my experience than to remain a fool.