We have a commercial loan from M&T Bank. It's originated by Silver Hill under its subsidiary Bayview Loan Company on Sept. 2007 and Bayview sold to M&T Bank after 7 or 8 months later. The loan is for a small MHP in NC.
Recently, our tenants are having problems with their jobs. Consequently, a few can not make their rent payments on time. Therefore, we are having a tough time making a mortgage however, we tried to make the payment on time because we are hoping to keep our credit in tack for refinancing the mortgage with low interests and low monthly payment in order to self sufficient.
We called M&T Bank to consider the readjustment or loan modification possibility but M&T told us that we have to be on default status in order to be considered. So, we looked for another bank to refinance the mortgage.
However, we found out that our payoff information from M&T Bank for refinance our mortgage was very disturbing. Terms and early payment penalties were so severe that we do not have the chance. It turned out to be our early payment penalties were over $160,000 on the loan amount of $279,237 and terms were 7 years early payment penalty plus 10 years payment penalty thereafter, which we were not aware of before the contract.
I hired a predatory lending mortgage lawyer and he tried to resolve the problem with M&T Bank directly; however, M&T Bank told him that commercial loan is norm in that terms. Basically, M&T Bank wants $160,000 penalty if we wants to refinance it or rather see the default or foreclosure on the loan.
The lawyer told me that he is not expert in commercial loan and he told me that we should consult with other commercial mortgage lawyer.
Please investigate the term predatory lending practice on this loan and if anyone is knowledgible with the commercial loan, help us.
Thank you.
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