Question hi, i have a blanket mortgage of 900,000 at 8percent on my two apartment buildings. it is a conduit loan from a reit. i cannot get out of the loan because there is a 300,000 pre-pay penalty. no one not my lawyer or mortgage broker knows what to do. i want to ask you what can i do to get out of this mortgage without paying that penalty or can i do something different.
Answer The best way is to re-negotiate with the REIT. That is your only alternative. Since many companies will remove the prepay clause if you sell the property, negotiate either to remove or reduce the penalty. Take this idea to your attorney and see what he can structure for you.
