What kind of lawyer do I need regarding an owner financed transaction?

We have an owner financed house for about 6 years. In the original contract it says that there is a ten percent prepayment penalty. The noteholder never recorded the mortgage and now our jobs have taken us away from the area but the note holder says we cannot sell without paying the interest on the full mortgage for the 30 year term. We are current with payments.

Asked on July 21, 2012 under Real Estate Law, Georgia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Any real estate attorney can read the document and let you know what your rights and obligations are with regard to the property.  Ten percent calculated how?  Would it be considered a pre-payment penalty?  The clause regarding the interest for 30 years sounds like it would violate public policy.  Please seek help.  Good luck.


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