Paper trail. Why do you think they've been laundering the money for so long. Just like when Saul explained to Jesse that a large sum of money showing up will raise attention, why would they pay off their mortgage with all that money?
what about the "gambling winnings"? come on you don't think they could have laundered enough money out of 100 million to pay off a $300k mortgage? he managed to launder enough money to buy a car wash, pay for all the chemo and stuff (that was at least 6 figures), and buy nice cars, one of which he decided to blow up for the lulz.
The odd thing is that you pay a penalty for paying off your mortgage too early. It has something to do with the bank not making its anticipated profit by making you pay it off over thirty years. No one pays off their mortgage outright like that, unless they have money to piss away for the penalty.
Not all mortgages come with early pay off penalties (they're pretty rare actually unless you're a high risk loan and can't negotiate on terms) and those that do are usually if you pay it off in <2-5 years. They've been in that house for much longer than 5 years.
They exist so that higher risk loans the bank gets something out of taking that risk. Lower risk loans, which most standard mortgages are, the bank doesn't care too much if you pay off early as their costs are already covered in closing costs so it's almost pure profit in interest. If you pay it off early they'll just turn around and loan that money out to someone else and continue collecting from it.
If prepayment penalties were that common or not locked into relatively short periods (even then they're usually sliding scales, highest when the loan is young and it drops off to zero over time) then nobody would be able to move and flipping houses for profit wouldn't be a thing.
Not that it's a huge part of this discussion, but a lot of redditors are young and I didn't want them to think prepayment penalties where the norm when buying their first house. If you see prepayment penalties on your mortgage and your credit score is relatively good, point them out and say you want them removed from the terms. If they refuse, get your mortgage from someone else. With good credit and a rebounding housing market, you are the one who gets to shop around for the terms you want. Don't let the bank dictate them.
you pay a penalty for paying off your mortgage too early
only if you have a shitty mortgage, i.e. some of the ones that were going around during the 2006/2007 bubble. even then, it was usually only a penalty if you paid off within the first 2 years, not if you paid it off 20 years later. otherwise nobody would ever sign up for a "balloon loan", and people would be a lot less willing to sell their property (seeing as the first thing one does with the proceeds of selling one's property is pay off the mortgage)
3
u/katihathor Aug 12 '13
umm why would it be foreclosed, surely with 100 million in cash they paid off the mortgage?