Cenlar - Is this for real?

CENLAR Central Loan Administration & Reporting-Fraud Reporting

Cenlar - I cannot get anybody to reply to me

Cenlar - The MOST incompetent customer service EVER!!!

For most of us, a mortgage is the absolute biggest loan we’ll ever take on. It’s daunting to think of making payments to the same bank for thirty years, but it’s frankly terrifying when you realize that the bank you so carefully selected to open a mortgage with isn’t the one you’ll be paying for the next few decades.

Selling Mortgage Loans

Mortgages are bought and sold like candy among banks. You can research the best deal you can get, check with the quality of the bank and then go through with your home purchase. A month later you’re no longer making payments to Bank A, you’re instructed to make payments to Bank B.

Usually you’re set for a while after your mortgage is sold the first time, but your bank can sell your loan at any time they want – it’s just an asset for them and you have very little control over what happens to it. Sometimes you get lucky and the company that buys your loan is a decent, reputable company who does a good job reporting payments and handling customer service issues.

Other times you’re totally screwed over.

Scary Mortgage Handlers

If you’re unlucky enough to have your mortgage sold to an unscrupulous mortgage company, you have very little recourse. This can happen at any time. You might have been paying Bank B quite happily for the last five years, when suddenly you’re paying Bank C.

But something’s not right.

Bank C is requesting that you make up an “escrow shortage” that you’ve never heard of before. Payments you know you’ve sent in seem to go missing. You’re trying to rebuild a credit score and the payments you’ve been so diligent to send in on time aren’t being credited correctly or reported to the credit union.

And you’re stuck in a bad situation.

Legally Dealing with Scummy Banks

While your options are limited, you do have some options.

You can refinance. If your loan is in good standing, you have the option to take that loan elsewhere and refinance. You may wind up with a better interest rate than you had in the first place, but there are costs involved. Refinancing will accumulate fees and it may take you several years to build up the percentage of escrow you had prior to the refinance.

You can wait it out. Sometimes transitions are rough and you just have to wait a few months for the bumps to settle. Should you have to do this? No. But is it simply necessary? It may be. If your new bank is part of a bumpy transition, it’s natural for things to be a bit rocky right at the start. If your original mortgage company filed for bankruptcy and the new bank took on the mortgages, for example, the record keeping may have been a mess before the new bank even got to see the paperwork.

You can try the legal system. Some banks are just rotten and they will continue to bleed customers dry until someone does something to stop them. In many cases this requires a call to the legal system. Obtain a lawyer and let him do the dirty work. There may even be a class action lawsuit already in development against the bank you’re having trouble with.

Because it you’re having serious issues with a bank, it’s extremely likely that someone else is, too.