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Is the early payment penalty legal in Texas.

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jenierman Joined: 16 Sep 2009 Posts: 1 1.31 Dollars($)	Posted: Wed Sep 16, 2009 4:18 pm    Post subject: Is the early payment penalty legal in Texas. We would like to owner-finance a property on which we have a mortgage. The document says that if we enter into an installment agreement with someone with intent to transfer the title without the mortgage company's written consent then the mortgage company can demand full payment for the mortgage. There is a disclaimer about only being able to invoke this within the law. Does the law in Texas allow for immediate demand if we owner-finance and transfer the title?
adonis Joined: 22 Oct 2005 Posts: 3852 Location: ALASKA 120.89 Dollars($)	Posted: Wed Sep 16, 2009 7:51 pm    Post subject: Hi jenierman, If such a clause is mentioned in the agreement, then you will have to follow it. The lender can demand the full payment of the mortgage if the title of the property is transferred to someone else without the lender's permission. You can inform the lender about owner financing and check if he gives you a written consent. _________________ Procrastination is the enemy of your financial sucess

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