Is there anyway to avoid paying the fine for breaking fixed rate period on mortgage?
Posted by admin | Under Fixed Rate Mortgage Friday Oct 17, 2008i want to release money out of my house, but because i rent it out they wont let me have very much, so i have decided to sell, but i still have a year of fixed rate left, mortgage is with Northern rock
Maria, unfortunately no because you signed and agree upon the terms of the loan, the only way that you could have a chance at avoiding this fee, is if you were actually on default(about to foreclose or go bankrupt) then you can talk to the loss mitigation department and rather than loosing more money the lender will be forced to forget the prepay in hopes of selling your property and getting back their money.
Now if the lender made mistakes in your loan, or lets say you feel like you were taken advantage at the last minute, example you did not know you had a prepayment penalty and your rate was adjustable until the last minute when you signed, then you can file a complaint against the lender, which is what lots of people are doing lately and they have actually been compensated. But that is a long shot and you will need to seek the expert opinion of a real estate attorney.
Good Luck.
I doubt you will be able to do this without paying more.
References :
Maria, unfortunately no because you signed and agree upon the terms of the loan, the only way that you could have a chance at avoiding this fee, is if you were actually on default(about to foreclose or go bankrupt) then you can talk to the loss mitigation department and rather than loosing more money the lender will be forced to forget the prepay in hopes of selling your property and getting back their money.
Now if the lender made mistakes in your loan, or lets say you feel like you were taken advantage at the last minute, example you did not know you had a prepayment penalty and your rate was adjustable until the last minute when you signed, then you can file a complaint against the lender, which is what lots of people are doing lately and they have actually been compensated. But that is a long shot and you will need to seek the expert opinion of a real estate attorney.
Good Luck.
References :
Financial Consultant 6 years.