Hi,
What are your thoughts on this situation?
I purchased property using down payment and mortgage with no prepayment penalty with plans to hold 1 year. Got a tenant who signs a lease/option and 2 months later says he wants to purchase property and his approved for a mortgage. Great and unexpected news. My mortgage broker finds out and informs me that although I don’t have a prepayment penalty on the loan, she does if it closes in less than 4 months and she expects me to pay that penalty if we’re to continue to do business.
Although legally I’m not responsible for the penalty, she’s the fourth and best broker I’ve used so I ended up negotiating with the buyer to delay the sale and me paying for his rate-lock extension ($700) to keep our relationship but it still left a bad taste in my mouth. Note, she has saved deals for me that other brokers couldn’t do which have more than made up for the $$ so I guess it’s just one blemish on an otherwise good relationship.