Help get me out of my prepayment penalty with Chase. I have a buyer and closing is Sept.10?

Question

I have been contacting them and they say that they sold my mortgage and can't tell me to who. I have closing in a week and need help. Phone numbers, names, anyone please.... we have a buyer and need to get out of this....please help us with information.

Answer 1

You got a lower interest rate when you agreed to the penalty.  That was part of the "deal".   Now it is time for you to uphold your part of the deal. But no one foresaw that prices would tumble so dramatically.  There is no profit in selling a house.  Paying a penalty might make the sale impossible.  SO you call Chase and beg.

The problem is that Chase has only 2 employees handling 1,100 short sales and loan modifications (which is the category you fall under).  I asked why they don't hire more. They said that the bad times will end in 8 months.  By the time they get all the new workers trained , they will have to lay them all off.

You have 550 people ahead of you screaming for help from Chase.  You have the phone number on your payment coupon. That is the only number to call.

Answer 2

If Chase sold the mortgage then you will be notified by the new holder of the mortgage so that you can send payments to them. It is very unlikely that the prepayment penalty will be forgiven because it was put in place when the loan was granted. There were conditions to which you agreed in legally binding documents.

If the lender cannot be found by the date of closing then there will be no closing. Maybe the title company can make some phone calls and get some answers but I wouldn't count on it.

Answer 3

It may be our fault for signing the documents.  It was not properly explained.  This was a refinance that we specifically requested the ability to sell at anytime.  We expressed a willingness to pay a higher rate in order to not have this problem.  The writer assured us that we could sell at anytime but it would cost us a higher interest rate.  Our interest rate is in the 9%'s.

We did use a realtor and we do have the Title Co. making phone calls.  Unfortunately, the PPP was discovered late into this transaction.  Chase's lower end reps told us it shouldn't be a problem since we are selling and not refinancing, but their supervisors tell us the opposite.

Answer 4

Honey, what do you mean get out of it?

You can't get out of it.  You received a RATE DISCOUNT and contracted to keep the mortgage for a certain length of time, and you didn't have to pay the PPP at all.

Now you want to keep the rate discount, sell the house, AND not pay the PPP?

Sorry, that is why you can't get out of it.

You should have been discussing this with the lender prior to putting the house on the market.

Also, you CANNOT close on the sale of the home without the CURRENT mortgage company generating a payoff...so you can't close until you find out where your mortgage is.

Let me guess...you sold your home without a Realtor.

Answer 5

You can't.  You have to pay it.

Your interest rate is apparently low.   The penalty is so that the bank breaks even, they have lost money on you at this point.

It should not matter that it was sold, the escrow company will work all of that out, but you need to suck it up and pay the penalty that you agreed to when they first gave you the cash to buy the house.