Interesting case Kevin. I’ve always thought there were “prepayment penalties” for paying off a loan early and “default penalties” in the event that you fail to make a payment and the payment schedule is accelerated. In this case, as I understand the deed of trust, it sounds like the lender confused prepayment penalties (or a “prepayment fee”) with default penalties, since the deed of trust talks about the loan being accelerated in the event of default and “prepayment fees” being owed.