The best way is to call the bank and get an estimate. Banks have different methods of calculating penalty and even the banks cannot give a concrete number until the mortgage is discharge in favor with another lender. I normally blend this to the new mortgage to minimize cash out.

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We gave verbal instruction upon receiving a letter last spring stating that our mortgage would be rolled over into a 6 month closed term. i called and told them no, that we wanted it open because we might sell, refinance or what ever, and they said that's ok they would make it open. so now, we've had our offer to purchase accepted at a new home and arranged for refinancing with another company on the current one to borrow against it and are moving out and have tenants moving in oct. 1. i just got a call from our mortgage specialist (not the original company from 7 years - but the new one), that the old company won't let us pay it out because it is fixed closed and because we aren't selling the old home. they say we have to wait until nov. 21 - 1 month and 20 days after our closing - to make these changes. what the heck? i've been trying to communicate with the mortgage company but am on the "call-back" list because the front line people have no power to do anything. i want to move the renewal date up to this week and pay it out, even if - and there are - penalties. i've never heard of this? have you? anyone have experience with this and what did you do to get out of it?

I'm not sure of your question. Is this loan a home equity line of credit and you wanted to use the equity line to purchase a new home??? And then rent the old one. Here is the problem. The bank is being very smart in this. People are buying new homes, using equity in the old one and telling the old house mortgage company (and the new lender on the new place) that they are going to rent the old house so that they can qualify for the new mortgage. Then after settlement, they just walk away from the old house. Your bank is trying to protect themselves from this.

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We have a mortgage through our local credit union. the challenge is, both my husband and i are unemployed, and there are few jobs in our small town. the mortgage company said if we were to sell and move, they would transfer our mortgage, but if we were to pay off our mortgage, there would be high penalties as they would lose out on interest. my question is, if we moved to another city or province (my family lives in ontario, we are in bc) could our mortgage transfer over without penalty? or would we have to switch institutions and pay the penalty to our credit union?

To be honest, it sounds like you have a Subprime Mortgage, because of the penalty for paying off the loan early. A Subprime Mortgage is basically one that has very high rates or bad terms, such as charging you extra for paying off the home. I would recommend first speaking with a lawyer to determine if you have any recourse to prevent them from charging you a penalty for early pay off. If not, in the end you will probably be better served paying off the home and the penalty, as the credit union does NOT have your best interests at heart. Next time you take out a mortgage, make sure that there is no early termination fee, as there should never be a penalty for paying off a home early.

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I purchased my condo for 262000. i now owe approx. 245000 and i can probably sell for maybe 250000, but the bank wants an ird penalty of about 17000 because i have a 5 year closed mortgage. i am desperate to move out of the city and do not have the money to pay for the ird. what will happen if i just walk away? i heard that if i do walk away, and the bank takes over and sells the condo for less than i owe on it (let's say for example the sell for 240000), they can come after me and sue for the remaining amount ($5000). is that all they can come after me for? i'm sure that they would get at least 245000 for the place though. in that case, does it mean that they can't come after me at all? aside from affecting my credit, what are the other cons? thanks a bunch!

Banks are not in the business of owning and managing real estate, therefore they will try to sell your condo as quickly as possible. They are not going to hold onto the property for six months or a year in order to hold out for top dollar...instead they will offer it at a price which will allow them to get rid of it as quickly as possible. You will then be on the hook for the difference between the outstanding mortgage balance and the actual selling price. In addition they are legally entitled to recover FROM YOU lots of other incidental costs as well, such as the legal and administrative fees related to the foreclosure, and those related to the sale of the property, property maintenance fees, real estate commissions, etc, etc, ad nauseum. If you walk away from the property expect the bank to come after you in court...and they will win. A much better solution is to contact your bank and to work out something that will work for both of you. One other adverse impact of allowing the bank to foreclose on your mortgage is that it will destroy your credit rating for many years to come. From then on you will be unable to obtain credit, or you will have to pay prohibitively high interest rates to obtain credit.

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Buyer suing seller (me) for $25 000 saying he couldn't find a house for the price i agreed to sell, he paid $13000 more for new house. is it allowed in small claim court he was looking for another house with leave from work cost him $1500 he rented an apartment where he was living before for 2 months more so lost another $2000 he spent some repairs in new house for $2000 legal cost on my home $1200 his small claim cost 1000 moving cost $1000 interest rate gone up by $4000 etc. grand total of $25 000 thats the maximum he can file in ontario toronto. are these numbers really make sense. ps i didn't close the deal because of bank's early payout mortgage penalty of $20000 house was already 100% mortgaged i had to bring the money to closing which money i didn't have still i have nothing but a big hole. how do you view this situation what is the justice can make sense.

You are most likely going to lose out on the case because you should have researched the payoff before you even put your house on the market. That is your fault, not the buyer's, and yes, you are in breach of contract. You are lucky you are not getting sued by BOTH Realtors for their commission as well.