When you want to break your current fixed mortgage before the term is up, you will pay a penalty to the bank which is 3 month interest if the current market mortgage rate is higher then your or IRD formula will be used to calculate a penalty if your mortgage rate is higher then the current posted rate.

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I bought my first house in december 2006 jointly with my husband. after having redeveloped the property, we would now like to sell the property on and make a nice profit on the sale of this house. however, birmingham midshires state that there will be an early redemption penalty of around £11000 to pay, should the mortgage be repaid within the first two years (i.e. prior to december 2008). does this early redemption penalty still apply if we wish to continue to use birmingham midshires as our lender and if we wish to continue to use the same mortgage deal as we presently do and the new mortgage is the same value as the amount we presently owe? any suggestions appreciated! thanks!

There shouldn't be a charge as what your wanting to do 'porting'. This is basically where you sell your current house and move the product to the new property . The redemption charge only applies when you're literally paying off your mortgage by remortgaging or paying it off by other means. This isn't the case from what you've said. Hope this helps xx

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Hi, to buy new house i took heloc against my old house which i planned to sell shortly to pay off heloc. i could not sell my old house so i am using it as rental property now. i want to convert heloc into fixed rate secondary mortgage. if i convert heloc into fixed rate mortgage, when i sell my rental property will the money from sale be transferred to my primary mortgage company without lump sum distribution to avoid tax penalty? thank you

You might be able to convert the heloc, but two items, one the rate on home equity loans are usually high, and two, home equities are tougher to come by, especially on a rental property. you could look into locking the rate like mary suggested, it depends on the lender and when you took out the heloc as the lock in feature has only been around for a few years. If you sell the rental, any proceeds will be given to you, other arrangements I would consult the irs or a cpa. you may want to look at bank of america for the home equity, I was just talking to a broker contact of mine and she claims they are doing home equities still, best of luck

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I have a 6 month prepay penalty and the only way around it that i can see is to sell the property. any other ideas? the one responder is correct: the ppp is good for 3 years, is calculated at 6 months interest of 80% of the loan balance

If it's a soft pre-payment penalty (PPP), then that's one way around it. If it's not, you will pay it even if you sell the property. I have seen some lenders waive the PPP if you refinance through them, but other than that, there's no way out of it. Update: FYI - there is no such thing as a 6 month PPP. The PPP is probably equal to 6 months interest on 80% of the balance, which is standard. The term of the PPP is usually 1, 2, or 3 years. You need to look at your loan documents. There will be something called a Pre-Payment Penalty Rider that will show the details of the PPP.

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My dad wants to transfer the whole legal side and mortgage over to me, how doies he go about this without having the hassle of actually selling the property over to me? is there a way of how to do this? he is in a fixed rate deal, and he is tied into 9/2009, and he has a 5% early redemtion penalty if he sells the house ! help !!!!!!

there is no way to "transfer" a mortgage without approval of the lender, so you need to contact them and they will want to see your income, work history, credit rating, etc. you might want to contact a real estate attorney

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We own an investment property. we obtained a loan from an individual 5 years ago to start our own business in which the individual used our investment property as collateral and filed a 2nd mortgage on it. we paid the 2nd mortgage off in full 9 months after obtaining the loan, and the individual refuses to file the release of mortgage, there are no other penalties owed to him etc. he is also the landlord on the commercial space we rent for our business, and he likes having the mortgage lien on the investment property as insurance he will get his rent every month. rediculous! we are now trying to sell the investment property and he has caused us to lose one buyer because of the title issue, by some miracle we have another buyer, does anyone have any creative ideas other than a lawsuit in civil court? this guy is not a brainiac, but he does have a decent lawyer, everything he owns is in a trust and the mortgage was funded out of that trust. there just has to be a way to force this guy to do the right thing and stop using these mafia tactics to push us around. help!

There is a maximum amount of time that he has to file that, and I'm sure that over 4 years is too long in all states. Tell him that you would hate to have to get a lawyer involved to make things right. That should get the ball rolling. If it doesn't contact your lawyer.

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Then they contact you and tell you you owe back taxes + interest and penalties? meanwhile they never informed you, or sent you a statement showing the taxes were no longer being held in escrow. is there anything one can do to fight this? or get a payment plan? they are threatening to foreclose on the property unless they get payment in less than 2 weeks. any advice or knowledge would help.

Making sure property taxes are paid is the responsibility of the owner of the property no matter if there is an escrow or not. I'd try contacting the customer service manager for the new note holder, explaining that the lapse was a result of the unapproved escrow agreement change, and ask them to work with you on it. If the situation is as described (depending on the state you reside in) you should be able to come to some sort of compromise agreement.

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I am experiencing a financial hardship & want to sell my property because i can no longer sustain payments. my mortgages are still up to date with payments as of march'07. i want to sell the house but having to pay for prepayment penalties makes cough up more money which i dont have. how can i convince lender to waive my prepay?

in some cases prepayment penalties only apply if you are refinancing not seeling. Pull out your loan docs and read the prepayment penalty page word for word. If it applies regardless, then there's a 99.99% chance they will not waive it. Banks are whores, I hate 'em. Unfortunately you have to use them.

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I bought my 1st house in july 2001 for 247k, we lived there until august 2005 when we bought another house. we re-financed and rented out the 1st property since then until i moved back in in feb/07 and live there till present time. now i am selling that 1st property for 320k and i want to know if i have to pay capital gains tax on it? if yes how the tax is calculated? the taxable amount of the capital gains is the gross ( 73k, from 320k-247k) or the net? (73k minus all lawyer fees, repays of home buyer plan, up-grading expenses, penalty for mortgage, etc.) i heard that us only charge capital gains if you lived less than 2 years in the property, and only if the capital gains is more than 250k, is that apply to canadian tax too? since i am living there (1st property) now, what do i need as proves that it is my residential property. can i go around with the capital gains tax if it's apply to me? thank you in advance.

When you stopped living in the 1st house, you are deemed to have disposed of the house at fair market value. Since the house was your principal residence, there would be no capital gains tax on this "deemed disposition." The fair market value would then become your cost base for the rental property. Then, when you moved back in, there would be another deemed disposition of the rental property at fair market value, and this would result in a taxable capital gain, as the property was no longer your principal residence. There is however an election whereby you can designate the property as your principal residence (even though it wasn't) for up to four years from the date that you started using it as a rental property, but this would not be allowed if during the same period you had already had designated another property as your principal residence. In any case, you could deduct related costs such as lawyer fees, commissions, repairs etc. from the capital gain, but not repayments to the Home Buyer Plan. As you can see, this is a somewhat complex situation and I recomment that you consult a professional accountant for advice.

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House has both husband and wife on deed. husband has mortgage solely in his name and credit. few months ago husband refinanced house for a larger amount to pay down debts. wife then moved out of the house into an apartment of her own and filed for a divorce. wife doesn't have income or creditworthiness to refinance or pay for house. husband wants to remain living in home and continue to pay mortgage. house appraisal value is the same dollar amount as the loan/mortgage amount. wife wants her share of equity out of the house. does she have any "leg to stand on" so to speak and what could one reasonably expect her to "get" out of this house? how does a judge divide equity in a house that doesn't have any? buy out doesn't seem an option because loan is already soley in husband's name. husband doesn't want to sell property. there is a pre-payoff penalty on mortgage. is wife responsible for half of this penalty? how someone thinks the wife who left, no longer lived in the home, no longer payed for it, did not contribute to the maintenance or upkeep to the home nor it’s appreciation in the years following the divorce but thinks the wife should get 50% of the future sale value

My ex husband did the same thing and I fell for it! It is a common ploy to make sure wife gets nothing. It *seems* logical, doesn't it? There is nothing for her to get so she doesn't push for anything. Yes. she has a "leg to stand on." She needs a *good* attorney. At a *minimum*, she should ask for 50% of the future sale of the property. (Are you *sure* she is still on the deed? Or, did he trick her into signing off the deed when he re-mortgaged?) Also, she can ask for a settlement or payments. The wife *should* get her share of the equity of the house and it is most likely that the judge will support this request. Just because the husband doesn't have the money doesn't mean he doesn't owe her the money! Get a *good* attorney! ADDED: You don't get it. She could ask that she get the house and *you* keep paying for it! And, if she has *any* good reason for leaving to bring before the judge (Like physical abuse, financial irresponsibility, emotional distancing, etc.) she would get it! So... 50% of future equity is *better* for you than her getting *100%* of future equity! Right? Not so crazy!