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Old 06-11-2015, 07:10 AM
 
710 posts, read 979,453 times
Reputation: 1004

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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
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Old 06-11-2015, 09:06 AM
 
Location: NC
9,346 posts, read 13,954,624 times
Reputation: 20842
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.
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Old 06-11-2015, 09:10 AM
 
Location: Bloomington IN
8,590 posts, read 12,250,767 times
Reputation: 24242
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.
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Old 06-11-2015, 09:28 AM
 
Location: New York
2,251 posts, read 4,900,507 times
Reputation: 1617
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
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Old 06-11-2015, 01:34 PM
 
12,016 posts, read 12,652,201 times
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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.
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Old 06-11-2015, 02:55 PM
 
Location: Phoenix, AZ area
3,365 posts, read 5,193,874 times
Reputation: 4203
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.
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Old 06-11-2015, 03:03 PM
 
Location: Rural Central Texas
3,672 posts, read 10,573,015 times
Reputation: 5577
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.
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Old 06-11-2015, 03:16 PM
 
12,016 posts, read 12,652,201 times
Reputation: 13420
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.
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Old 06-12-2015, 06:31 AM
 
Location: MID ATLANTIC
8,653 posts, read 22,813,327 times
Reputation: 10473
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.
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Old 06-12-2015, 07:10 AM
 
Location: NC
9,346 posts, read 13,954,624 times
Reputation: 20842
That is an eye opener! Maybe the escrow money was sent to the tax or insurance agency?
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