Do I have to pay a pre-payment penalty on my mortgage while I am in foreclosure, in the state of California?


Question:
I was charged $13K by New Century Mortgage for a pre-payment penalty when I sold my home just before (30 days or so before the actual trustee's sale date) it was going to sell at a foreclosure sale. My note did not specifically state something like: "the pre-payment penalty shall apply in a acceleration after default". I argued that fact with New Century Mortgage and they basically told me "too bad", the pre-payment penalty applies whether or not the note you signed with us states that it does or not. I did locate the Ca. Civil Code, section 2954.10 which states pretty directly what the law reads etc., etc. Any help on what to do? Where to go? A good lawyer referral near Auburn, CA? Thank You!!
read what you signed at closing.i am sure there is a statement regarding pre-payment penalties. keep in mind pre-payment is pre-payment with or without foreclosure..

yes...this is correct you were to be charged to $13K.

if you think you were wronged...see a California Real Estate attorney.

good luck
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