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Refinancing owner-financed mortgage

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hentzmf

Junior Member
Want to refinance owner-financed mortgage contract

What is the name of your state? Virginia

Took out a mortgage on a building in 1996. Owner-financed note is at 9%, and it ends in the year 2022. The contract with lender states I can not refinance or prepay. I would like to refinance at a lower rate or borrow money from the bank to pay off the note. My lawyer originally said don't worry about the no refinancing clause, etc. -- said I could break it later. Now that I want to refinance, my lawyer says the lender may sue me and it's probably not worth it. Real estate here has almost doubled since 1996 and the appraised value on my building has almost doubled. I use the building for my business. Should I find another lawyer? What are my options?
 
Last edited:


S

seniorjudge

Guest
hentzmf said:
What is the name of your state? Virginia

Took out a mortgage on a building in 1996. Owner-financed note is at 9%, and it ends in the year 2022. The contract with lender states I can not refinance or prepay. I would like to refinance at a lower rate or borrow money from the bank to pay off the note. My lawyer originally said don't worry about the no refinancing clause, etc. -- said I could break it later. Now that I want to refinance, my lawyer says the lender may sue me and it's probably not worth it. Real estate here has almost doubled since 1996 and the appraised value on my building has almost doubled. I use the building for my business. Should I find another lawyer? What are my options?
"...My lawyer originally said don't worry about the no refinancing clause, etc. -- said I could break it later...."
Fire this lawyer.
 

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