U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-11-2015, 07:10 AM
 
Location: Tucson
420 posts, read 519,437 times
Reputation: 506

Advertisements

Less than a month after the closing our mortgage was sold to a REIT. We are supposed to be sending our payments in to a company that collects the money for them called CENLAR. So there is no bank involved and my husband and I have not heard good things about this CENLAR company. We wouldn't mind so much if it had been sold to a bank but this seems scary to us.

Has anyone heard of this company? We don't know what to do since there is a nine month "claw back" period so paying it off before then would cost us some money. We will do it if we have to though.

Any thoughts, ideas?

Thanks
Reply With Quote Quick reply to this message

 
Old 06-11-2015, 09:06 AM
 
Location: NC
6,081 posts, read 7,042,221 times
Reputation: 12054
What does it matter to you whose money is used for the mortgage? You aleady have a contract and they must abide by it. You make payments just as usual. You have a payoff clause, so you pay it off as per the contract. Nothing changes, as long as you follow the requirements of the contract you have already negotiated.
Reply With Quote Quick reply to this message
 
Old 06-11-2015, 09:10 AM
 
Location: Bloomington IN
5,870 posts, read 7,100,012 times
Reputation: 14117
Many mortgages are serviced by non-banks. It's not a big deal most of the time. Keep copies of your checks or do a screen print of your electronic payment. Again, not a big deal.
Reply With Quote Quick reply to this message
 
Old 06-11-2015, 09:28 AM
 
Location: New York
2,251 posts, read 4,164,578 times
Reputation: 1607
I have seen Cenlar - a small servicing company. Chances are due to their size, they don't have the staff to be continually reporting your on time payments to the credit bureaus as larger bank do. Dito make your payments on time and you'll be fine.

FYI - on the loan note (in the first few pages of your closing documents), a paragraph about your prepay penalty. Should be a clause showing how long the penalty lasts. Possibly another clause if you payoff 20% of the loan amount in the first year, you can be penalized...

Suggestion - take one payment and divide by 12, add that 1/12th with your normal payment - stating apply to principle. From the first payment on a 30 year loan can knock approximately 7 years off the mortgage.

Good Luck
Reply With Quote Quick reply to this message
 
Old 06-11-2015, 01:34 PM
 
10,274 posts, read 6,515,435 times
Reputation: 10857
Quote:
Originally Posted by luv4horses View Post
What does it matter to you whose money is used for the mortgage? .
Because there are shady companies that work outside the law and get your rent check but say they didn't and put it in the round file instead, all so they can charge extra penalties and fees. I'm hoping any company that holds a mortgage is still bound by the same regulatory agency as a bank and I would certainly see to that they do things properly.
Reply With Quote Quick reply to this message
 
Old 06-11-2015, 02:55 PM
 
Location: Phoenix, AZ area
2,933 posts, read 2,402,108 times
Reputation: 3372
Quote:
Originally Posted by so954 View Post
Because there are shady companies that work outside the law and get your rent check but say they didn't and put it in the round file instead, all so they can charge extra penalties and fees. I'm hoping any company that holds a mortgage is still bound by the same regulatory agency as a bank and I would certainly see to that they do things properly.
Almost all mortgages have a 15 day grace period, if you don't see your check deposited within 2 weeks that is kind of on you. If you used online bill pay the money for the check is withdrawn the day the check is sent and that holds up in court as paid assuming you entered the billing information correctly. Are you really as miserable and cynical a person as your posts convey so954?

Pay your bills on time and you will never have issues.
Reply With Quote Quick reply to this message
 
Old 06-11-2015, 03:03 PM
 
Location: Rural Central Texas
3,581 posts, read 9,008,547 times
Reputation: 5402
There is always the chance of screwups. Back in 1985 I bought a house and the mortgage was sold 9 times in the first 4 months. We got a notice that our latest mortgage company required an escrow account and our payment was going to more than double. I asked what happened to the escrow account we setup when we closed 4 months ago. Nobody had any record of it anymore and said one of the prior companies must have used it for something and not told us.

We had the choice of funding the escrow account again or fighting a foreclosure.
Reply With Quote Quick reply to this message
 
Old 06-11-2015, 03:16 PM
 
10,274 posts, read 6,515,435 times
Reputation: 10857
Quote:
Originally Posted by johnrex62 View Post
There is always the chance of screwups. Back in 1985 I bought a house and the mortgage was sold 9 times in the first 4 months. We got a notice that our latest mortgage company required an escrow account and our payment was going to more than double. I asked what happened to the escrow account we setup when we closed 4 months ago. Nobody had any record of it anymore and said one of the prior companies must have used it for something and not told us.

We had the choice of funding the escrow account again or fighting a foreclosure.
Wow, that's scary. Crazy story.
Reply With Quote Quick reply to this message
 
Old 06-12-2015, 06:31 AM
 
Location: MID ATLANTIC
7,602 posts, read 17,639,445 times
Reputation: 8084
Quote:
Originally Posted by so954 View Post
Wow, that's scary. Crazy story.
And our over-regulated industry wouldn't let that happen again......not without the feds swooping in.
Reply With Quote Quick reply to this message
 
Old 06-12-2015, 07:10 AM
 
Location: NC
6,081 posts, read 7,042,221 times
Reputation: 12054
That is an eye opener! Maybe the escrow money was sent to the tax or insurance agency?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top