A friend of mine recently purchase a foreclosure property in Florida and will like to refinance to get equity out (20,000) but red through her mortgage papers that there is a 20% prepayment penalty to the mortgage holder does anyone have gone through this, please help.
A mortgage note is a contract and once signed you are bound by its terms. This is a good example of why you should always get the entire closing package well before closing day so that you can read through every last detail. Also, a good mortgage lender should have disclosed this little detail before the closing. Sorry if my comments are a bit callous. You should read through the prepayment clause carefully as they often have an expiration date or possibly there is an out yet to be found.
Could she take a second on it? Higher rates but still a way to extracat the cash.