Countrywide abuse and greed in payoff, beware!!

[paulj1x]

We finally sold our home and were very surprised to see an $11,000 prepayment penalty in the payoff demand from Countrywide. We called and Countrywide confirmed that there was an $11,000 prepayment penalty. We called again and asked to see a copy of the loan document where we acknowledged the prepayment penalty. What Countrywide sent back stated:
"If within the first THIRTY SIX months after the execution of the Note, I make any prepayment(s), the total of which exceeds 78,000.00 amount of this Note, I will pay a Prepayment Penalty in an amount equal to the payment of 6 MONTHS advance interest on the amount by which the total of my prepayment(s) during the 12-month period exceeds 20.000 % of the original principal amount of this Note. The Note Holder will waive this penalty if I furnish the Note Holder with documentation, in the manner and at the time reasonably specified by the Note Holder, identifying the prepayment as being in connection with the sale of the Property to an unrelated Third Party."
In other words, this was a prepayment penalty for refinancing, but nor for a sale. We called back and indicated this, we were then told that Countrywide would not charge us a prepayment penalty but only if we closed within 14 days!! There of course is nothing that requires closing in 14 days in the loan document, but since we were going to close within 14 days anyway we didn't fight this further.
I wonder how many people have paid a hefty prepayment penalty to Countrywide without needing to.

Paul