Lender's Refusal To Waive $9K Prepayment Penalty May Force SW Florida Couple Into Foreclosure

In Charlotte County, Florida, WINK News reports:

• A family is facing foreclosure, even though they're trying to pay off their mortgage. [...] A couple that has cut every expense to make their bills and keep their home may [lose] it even though they're paying on time. Rick and Janice Brooks say they made a bargain to sell to avoid foreclosing on their home. [...] They thought they found their way out -- a buyer who could satisfy all of their mortgage debt. "$221,892 is what everyone will get once this is all over," Brooks says.

• But, that doesn't account for an additional $9,000 they now owe the bank -- a penalty for paying their mortgage before it's due. Something neither of them realized they were contractually obligated to do. "It's not like we're asking them to forgive any part of our loan," Janice Brooks says. "We're asking them to waive an unjust fee that was given at a more economically sound time. It's not stable now." They've already borrowed money from family. Now, everything in their Charlotte County home is for sale since it looks like their lender won't budge on the fees.

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• Rick and Janice have just one week to try to get their lender to waive the penalty fee. If not, they say they'll have to cancel the contract on their home, which could result in a lawsuit.

For the story, see Penalized for paying mortgage on time?