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Cenlar Loan Work-Out vs. Loan Modification

Discussion in 'Loan Modification' started by wahine, Nov 28, 2011.

  1. wahine

    wahine LoanSafe Member

    My mortgage was with Thornburg, which went bankrupt, and is currently serviced by Cenlar. I am trying to apply for modification and was sent forms for a "loan work-out" which includes "temporary modification" , not permanent, as an option. For starters, what is a temporary modification? While I knew Cenlar was going to send "their" forms versus the HAMP forms, their forms seem quite different. Does anyone know if lenders are required to consider borrowers under the HAMP program? Could I send the HAMP forms instead of the Cenlar forms?

    Wahine
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi Wahine,


    Welcome to the forum and thank you for joining............


    Cenlar is not participating in the HAMP program, this is why you are being asked to apply for their inhouse modification. However, if your loan is backed by either Fannie Mae or Freddie Mac, then allowing for application for a HAMP modification on these loans would be mandatory.


    Check and see if your loan is backed by either here;

    For Fannie Mae: 1-800-7FANNIE (8am to 8pm EST)
    www.FannieMae.com/loanlookup

    For Freddie Mac:
    1-800-FREDDIE (8am to 8pm EST)
    www.FreddieMac.com/mymortgage
  3. wahine

    wahine LoanSafe Member

    Adding ARM

    Thank you, Cat.

    I don't have a Fannie Mae or Freddie Mac loan. And we only found out about two weeks ago, that Wells Fargo holds the mortgage.

    So here's some details on our situation. We have never been late more than 3 weeks or so because paying the mortgage has always been a priority. And (unfortunately?) we probably have very good credit. (Don't know. Should I check?) Except that last year we didn't pay our RE taxes and Cenlar paid it this year and set up an escrow account for us. My salary is $1200 a month. It dropped from about $1800 four months ago. My husband's main source of income ($3K) comes from his father since he helps care for his mother who has Alzheimers. This has been the case for about a year now. We another $300 - $400/mo total of SE income. The primary and secondary loans amount to almost $270K and the ARM interest rate is 6.375%. With both mortgages and escrow, we pay $1900/mo. That doesn't include $1K insurance--and doesn't include a $2,200 flood insurance that the second mortgage company added to the principal this year for the first time. (They used to add to monthly invoice.)

    Two years ago, I applied for a loan modification when TMST was the servicer and was turned down because we "[didn't] make enough money to cover the monthly expenses". The agent said we needed to pay off some debt (it was about $16K then) and/or show more income. He coldly said we could do a short sale. I told him I thought we were the people the whole HAMP was supposed to help! Well, we now have predictable incomes and have since paid off half the debt with tax refund money. I realize that there are many, many people in far tighter financial circumstances (we have seven children), but I'd appreciate any tips in dealing with Cenlar.

    Thank you for any pointers!

    Andrea
  4. Cat Damiano

    Cat Damiano Mortgage Wars

    I am not very familiar with Cenlar, but a good majority of inhouse modifications do somewhat mirror HAMP. Keep us posted on your progress.

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