is this legal...and what can be done if anything could be suspicious or not...also what are my rights and what can i do..[ this is not with a bank ]
2007-11-27 21:01:27 · 6 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
It is an unusual stipulation. In order for such a limitation to be valid, there has to be some consideration, such as "I am giving you a discounted interest rate if you agree not to sell within two years."
Otherwise, I do not see where such a clause would be binding. If there is a lien on your property, the owner gets his money first, so he has nothing to lose on the sale.
2007-11-27 21:07:43 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋
There was a case similar to this in California about a year ago. A public housing agency sold "affordable" homes to several couples. The homes were sold for a price substantially lower than the market price for similar homes. One of the contract stipulations was that the homeowners could not sell for, I think, 5 years, and if they did, the agency would be entitled to half of the profit.
A court ruled that the contract was unconscionable, and the 5-year clause was unenforceable. The homeowners were entitled to the entire profit.
So, a clause like the one you identified would be suspect, in California at least.
2007-11-28 16:19:47 · answer #2 · answered by Mr Placid 7 · 0⤊ 0⤋
This clause was probably put in for one reason, so the company that has your mortgage can continue to charge you interest for two years.
I'm guessing there is also a penalty for paying off your mortgage early.
However, if you agreed to it, it could hold legal merit. You would need to consult an attorney to be sure. Most do not charge for the initial visit, check your phone book for an attorney that specializes in this area.
2007-11-28 05:43:51 · answer #3 · answered by trooper3316 7 · 0⤊ 0⤋
Does it actually say that? It could be that there are penalties for cashing in the mortgage early, say you pay high charges for the fact the rate is low, which *effectivly* means you can't move, but doesn't actually say you can't. That's perfectly legal.
2007-11-28 05:20:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I suggest you consult an attorney to read the papers you signed when you accepted the mortgage agreement.
2007-11-28 05:26:10 · answer #5 · answered by Baby Poots 6 · 0⤊ 0⤋
I suggest you contact a financial advisor to seek professional advice. I wouldn't take any chances with something as important as a mortgage. You may live to regret it.
2007-11-28 05:08:17 · answer #6 · answered by JillPinky 7 · 2⤊ 0⤋