Paying off an owner carry mortgage early

[Kelly Torrens]

Hi there. I was very fortunate to find a couple that were kind enough to carry a loan for me on my home. It was beneficial to both of us at the time, because the home is a very old manufactured that would not qualify for a home loan. I was a newly widowed mother with 2 kids and at the time my life was a swirling vortex. It was 70k loan. I was to pay for about 14 years. All was well until I got injured and after 4 years of perfect payments, I was late. They knew the situation and luckily enough, they had the ability to be lenient. I will be getting a settlement from this injury that has kept me from working for nearly a year now, and I am 3 months behind on my payments. I have been sending the lenders $100 a month ONLY as a late fee by me, not asked for and not having anything to do with the loan. In a couple months I will be paying the loan off completely. I am not knowledgeable in tax laws etc, but I want to do the very best thing for them to lessen any impacts etc that they have because I am paying off early. Obviously I do not want to do anything illegal, and they have not asked me for even the tiny check I send them each month. Can someone let me know any tips or tricks to keep their penalties, if any, at a minimum? Thanks so much.