Posted by Stacy (AZ) on February 08, 2000 at 13:55:41:
I meant “unfair” in the context of unfair trade practices, not that I personally thought it was unfair. The reasons I posted this is that I have a 5-year prepay penalty on my loan through Countrywide, in exchange for buying down the interest rate. However, it specifically states in the prepay addendum that a sale within those 5 years would not cause a prepay penalty (but a refi would).
Also, I think it was Rob (FL) that posted something about case-law finding that having a prepay penalty that is activated when a house is sold interferes with and diminishes the owners basic right to dispose of his real property, and that a court found that this was an “unfair practice.”
But, I’m reaching back to try and remember a post from several months ago, so I’m not 100% sure about this.