Friday, December 23, 2005

Taking advantage of disaster.

Hey, you knew what the terms were when you signed the mortgage.
Some lenders are charging prepayment penalties of more than 9 percent to people using insurance checks to pay off homes destroyed by Hurricane Katrina.

Eleanor Greenidge, had a mortgage principal balance of $71,500 on her Lakeview home, which was lost in the August hurricane. A payment from her insurance company covered much of the principal, but Greenidge's lender demanded that she pay early payoff penalties and interest fees totaling $6,673.

Her lender is Ocwen Loan Servicing. Just so you'll know.

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