Selling building only a year into a mort. Piss off bank?

[Mike Adams]

We purchased a 8 unit building in Stamford, CT last year a few months prior to the lock-down. Regretfully, we have two out of the eight tenants paying sparingly and they've also wrecked their units. Atty says we cannot evict due to the moratorium and the tenants refuse to apply for aid. These are the only people in the world that claim to contentiously catch COVID, but were "fired" due to the pandemic and "do not work".  They also cannot produce one COVID results test.

Anyway, we received an offer to purchase the building, in cash and verified funds $140k over original purchase price. We would have a 5% pre-pay penalty fee from the bank, but the bank (M & T Bank) also holdings about 2 million in notes on our other properties. If we sell the building, does anyone think they'd be pissed off enough to cease doing business with us and call the other four notes they have on our properties?

[Steve Brown]

As a lender, no, I don't.  The pre-pay penalty is enough to satisfy the early payoff.  Secondly, there isn't anything to be pissed about when you're making a business decision that is right for you.  Personally, I appreciate when a good customer makes a proactive decision before it turns into something we need to have a difficult conversation about.  I wouldn't be very concerned.