Legal Question in Real Estate Law in New Hampshire

Real Estate Law in New Hampshire

We refinanced our home last year. Now, we are selling our house and moving to another state. However, in our refinance documents it states that if we payoff before 3 years we must pay 5% of the payoff price as a penalty fee. Is there any way out of this fee? Our new lender believes that if we are relocating out of state, there may be a way to get it waved but the the lender used for the refinance is saying no. Please advise!!??


Asked on 5/24/07, 4:59 pm

1 Answer from Attorneys
Bruce L. Dorner Dorner Law Office

Re: Real Estate Law in New Hampshire

I would need to examine the loan documents before responding. Generally, you contracted for a particular set of terms when you borrowed the money. Getting the lending institution to drop the penalty is likely to be a bit of a challenge. An underlying concern is that it may take quite a while, or possibly litigation, to achive your goal. The cost to dispute this charge with the bank might be as much (or more) than the prepayment penalty. Without examining all the loan documents it is impossible to provide a better response.

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Answered on 5/25/07, 7:39 am


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