If your mortgaged property becomes a target of eminent domain, you may be worried about unexpected financial repercussions. Specifically, a possible prepayment penalty by your lender could be a cause of major worry. Here is what you need to know to allay concerns.
What does the law say?
In accordance with Ohio law, state agencies usually reimburse any prepayment penalty that your lender may charge you as a direct result of the taking. This legal requirement generally protects you from financial penalties when you are not at fault.
Gather all relevant documents
The law entitles you to reimbursement for certain other reasonable expenses you incur as a direct result of the eminent domain taking, in addition to the prepayment penalty. To ensure coverage of all your out-of-pocket expenses, you should keep relevant documents, including:
- Mortgage documents
- A lender payoff statement
- Any notice showing a prepayment penalty
- Closing statements
- Proof of prepaid taxes
Having these records gives you and your attorney the documentation needed to support your reimbursement request.
Protecting your full reimbursement rights in Ohio
Facing an eminent domain taking, also known as an appropriation proceeding, involves multiple deadlines, documentation requirements and negotiation opportunities that can be difficult to manage while also dealing with the disruption of losing a property. In this situation, it may help to speak with an Ohio eminent domain attorney. They can take a look at the offer, confirm what expenses the agency should cover and help you pursue the full amount the agency may owe you.
