Legal Question in Real Estate Law in Tennessee
Prepayment Penalty
I have received a payoff letter from my mortgage company which includes the following language, and would like an interpretation of this language:
''If this loan is paid off as a result of an arm's length legitimate sale, the prepayment amount quoted may be waived: 1)the loan was funded after March 1, 1999 and 2) a
certified finak HUD1 is submitted to Indy May Bank with the
payoff proceeds.''
Thanks you
1 Answer from Attorneys
Re: Prepayment Penalty
It means that your loan probably contained a prepayment penalty of some kind. It appears that the penalty portion of the payoff can be waived upon receipt of the requested information if the loan was made after the 1999 date and you furnish a copy of the Settlement Statement, showing a buyer, to the lender.
I would recommend that you gather up your copy of the loan papers from when you took out the loan and take them to an attorney to have them reviewed as to whether there is a prepayment penalty and to assist you with the payoff.
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