We expected to be in our New Jersey home forever. To decrease our interest rate on two mortgages, we refinanced in August with Option One.in December we learned that we were being transferred to Atlanta and the relocation company would buy our home from us and take over the closing.
We have now sold our home and located a new home and are mortified and embarrassed to find that Option One will not waive or reduce the exit penalty of $12,600 on our perfect pay record of our loan with them in leaving the mortgage. The human resources and relocation company are now fully aware of this situation and either the company will pay or we will pay this extortion.
Their explanation is that we signed the paperwork. I don't know about anybody else, but when you sit down to sign the paperwork, you assume a few things: 1. That your mortgage lender is looking out for your best interest. 2. That your attorney is looking out for your best interest and can insert the following phrase:
(taken from Jack Murray Reference, Default Interest Rates, Late Charges and Exit Fees: Are They Enforceable?)
"Exit Fee" shall mean the sum of % in the first Loan Year and the Second Year and $% in the Third Loan Year. Upon the repayment in the full of the Loan, whether on the Maturity Date, Upon payment of the Loan as permitted by SECTION % of this note or upon the acceleration of the Loan by Lender following an Event of Default, Borrower shall pay to Lender, together with all other amounts due or payable under this Note or the other Loan Documents, the Exit Fee.
I am angry that a prepayment penalty can reach this exorbitant amount. Upon a relocation, laws should be written to bypass this in the form of a waiver or decrease in this case. A gun has been put in my face and the trigger is cocked!
Dianne - Tinton Falls, New Jeresy
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