Applying for a loan modification with Cenlar FSB Home the first requirement you have to fulfill will be completing and submitting Cenlar FSB Home Request for Mortgage Assistance (RMA). It is must that the paperwork that you use must be the latest. It will be very helpful if you consult with a professional or your lender before submitting the paperwork. There are many professionals you can work with to get help but finding the right ones is crucial so that the process goes on smoothly. That’s why we put the latest paperwork we could find online; to help you. That is what we do as we are a company working to help our customers with Mortgage relief. Click here to request a call from a loan mod pro or call 888-934-3444.
Cenlar FSB Home has a Hardship letter affidavit built into their application which states your hardships,
Pro Tip: When reviewing you for a modification approval Cenlar looks for your original reason for defaulting or RFD. If the RFD has not been cured (hardship) has not been resolved in many cases the will not be able to help.
EXAMPLE: A RFD like loss of income must be resolved by replacing that income. One of typical thing they will want to know is if you are making more or less income. What comes next varies from case to case based on the mortgage assistance options that are available.
First let us explain what Mortgage Loan Modification is not. Loan Modification is not the same thing as a refinance. When you want to get a second loan to pay off your first loan it will be called as Refinance. While doing Loan Modification you cannot combine loans that are first mortgage or second mortgage. In a loan Modification we do exactly what it looks like. We will work with you and your lender to get the terms of the loan modified.
What terms can I change on my mortgage with a loan modification?
Thinking out of box is not something Banking industry does. This is the reason that the things you can get modified for you mortgage are very limited.
The request which we get the most is that people want to change the interest rate. The mortgage servicer will push to reach affordability to it will be based on your income.
The total life of the loan can also be adjusted but this will not work in the same way as they have been seen adding payments to the back of the loan. You cannot get the loan extended for the period of your missed payments. The company will extend the loan back to its original length of 30 years in most of the cases. We have seen as much as 50 years, but as 30 years is the norm, any extension beyond is generally no more than 40. Beneficiary of the note and the limitations they set completely control this.
The lender will take the payment that you are behind on which is called as Principle Capitalization which will include any past due payment, interest, and fees later adding them to the outstanding balance of what is owed. In rare cases that are generally dictated by the amount of perceived equity in the home (or lack there of) the investor on the loan may be willing to take a reduction on the principal owed
This is not limited only to Cenlar and all the lenders have the usual document requirements. You will have to provide your financial information to you servicer such as a monthly budget, your tax returns for the last two years along with a 4506t to show the returns were actually filed, pay stubs or proof of income like a profit and loss, bank statements, reason for requiring to do a loan modification, and a hardship letter.
Pro Tip: Working with our professionals should allow you to be able to pick out the documents your servicer Cenlar FSB Home will need. When your mortgage company requests items after they’ve started their modification review process they passed over sending your file to the next stage.
The lender will want to balance out all the options available to the homeowner while doing the Loan Modification. One option available for lender will be to check if the value is acceptable. There are many ways to do a valuation including some ways in which the value is obtained online. In some cases a value is completed by a real estate agent, In this type, the broker compares the properties in the area. In some of the cases the broker may want access to the home to do an interior valuation. In some cases only a drive by is enough. The person making the valuation will compare properties that are currently listed and which have been sold recently doesn’t matter which type of valuation they are doing. They consider the homes perceived condition, the size of the living space, the size of the lot, how many stories it has and whether or not it has a pool. They will also consider market conditions and how fast homes are selling in the area. There are many factors they take into consideration.
The investor which Cenlar is representing will require a valuation in some cases. In this case the lender will do a valuation based on a computer also known as an Automated Valuation Module (AVM). The cases in which the investor will hire a broker to do a valuation are very rare due to the costs. The cases in which the investor hires and appraiser are even rarer. The homeowner may be required to pay upfront fees in some of the cases for these services.
Pro Tip: AVMs are not accurate. They can often show a skewed view on what your property is worth. Want to get a property valuation? Contact us for a Property Valuation.
Mistakes happen and it doesn’t matter if a person is a professional or a layman and the value may returns too high or too low, you may have to deal with a value dispute. Depending on who the investor is or if it’s insured there may be different processes for filing disputes with Cenlar FSB Home or another managing entity.
Pro Tip: Equity is not always your friend. If you have equity your lender may not work with you because they would rather you sell your home and pay off your loan or refinance. If you don’t have enough equity then they may feel that this will not be a good investment for them so they may also decline you. Speak to one of our Loan Modification specialist for a free no oblication review by calling 888-934-3444.
At this time after the value has returned the lender will make a decision as to your qualification for the Loan Modification. Usually there is an auditing process before the submission to management and if approved there is often another auditing process the occurs before an approval letter is issued.
Pro Tip: Check Your Numbers! Reviewing the NPV is crucial to understanding whether the offer made to you is accurate. We regularly see servicers misinterpret the information submitted to them. Understand how your loan modification underwriter may think is important. Call us for a free consultation at 888-934-3444.
NPV stands for Net Present Value. NPV is an algorithm that the investor uses to get the value for their money. This is also not a stable value. It changes from day to day. In an NPV the investor will look at two seperate homeowners and see where they can make more money. The lender will have to see whether taking the amount owed and increasing the account balance is worth it or not as the client is already behind on the payments. Homeowners have to know that when the numbers don’t add up for the investor that is when they are most likely to get declined.
Countering the NPV decline is easy you will only have to look at the parts that don’t make sense and attack those parts. Look at each point and try to figure out what the feasible output should be. The most typical are incorrect income figures but it could go beyond that to things like the property’s perceived value and even in some cases the consumers credit report.
Pro Tip: If there is a time to appeal a loan modification decline it’s now. This is the time to analyze everything you know from their review. Make sure that you have all your proof straight because you might only get once chance at a decline appeal.
In some cases you will be put on the trial payment plan for three months if you get approved for loan modification from Cenlar. You will not know what the finalized terms will be that they are offering you but the final payment should be inline with what you will be paying for the mortgage at least at the onset of the new plan.
Before the completion of the Loan Modification process there is a finalization process. If you have been placed on trial payment plan then the finalized loan documents will be sent out somewhere between second and third payment. They usually come with a prepaid package to return the documents to the lender. Once the documents are returned and the loan modification goes through the final audits with underwriting the master loan documents are amended to show the new terms of the loan.
Pro Tip: If you go through the trial plan payments and do not get a modification implemented you may have legal rights. Need a legal consultation? Contact us to be connected to an attorney or call 888-934-3444.
