can the bank charge you with a large penalty fee for selling your house off entirly before the mortgage is up?

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can the bank charge you with a large penalty fee for selling your house off entirly before the mortgage is up?

Asked on May 26, 2009 under Real Estate Law, North Carolina

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I do not think I have all the information here to understand your question.  However, i will do the best i can.  You may have a mortgage with a prepayment penalty.  This means that you agreed when you signed on the loan that you would pay the bank a fee if you attempted to pay the mortgage loan early.  If you had a prepay clause in your note, then this may explain the reason for the fee.  However, i would need to see the loan agreement to fully understand why you are being charged.  I suggest calling a lawyer or the lawyer who did the closing for you to help you.  To save money you could call your broker who can tell you what the mortgage says.


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