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WiseOwl58
WiseOwl58, Lawyer
Category: Real Estate Law
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Experience:  Experienced real estate lawyer and real estate broker.
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We signed a mortgage agreement on some ranch land in Texas,

Customer Question

We signed a mortgage agreement on some ranch land in Texas, that contained a prepayment clause that states he must approve any prepayment. (this is a private lender) the property used as collateral belongs to my son and he has sold the property and asked for a payoff from lender, the lender wan wants to charge him for the full amount of interest that would have been collected on the note if it had gone the whole 10 years. Is this legal?
Submitted: 5 days ago.
Category: Real Estate Law
Expert:  WiseOwl58 replied 5 days ago.

There is nothing illegal about it, assuming the overall contract is legal, but I suggest that you try to negotiate something better with the lender. If not, perhaps you can use the money for some other investment to generate return sufficient to pay your private lender the interest over time, in other words, don't prepay the mortgage, keep the money and use it for some other investment to cover costs.

Please rate 4 or 5 and close out the question. Good luck to you. I wish you all the best.

Expert:  WiseOwl58 replied 4 days ago.

Please rate 4 or 5 and close out the question. Good luck to you. I wish you all the best.

Customer: replied 4 days ago.
4
Expert:  WiseOwl58 replied 2 days ago.

Please rate 4 or 5 and close out the question. Good luck to you. I wish you all the best.

Expert:  WiseOwl58 replied 2 days ago.

You need to accept the answer please.

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