Litton, So FL, Denied Mod, Walk Away?

[mustleavesoon]

Just wanted to share my story:

In Nov 2008, advised Litton I would have trouble making payment due to unexpected medical and other expenses (failed business obligations). Litton told me there was nothing they could help me with. I did not have "negative cash flow." The representative did not tell me that I didn't qualify for any assistance because I was not in default of the loan.

Made a bad decision to go through a modification company who, in essence, only took my money ($2500 up front).

Paid Nov payment on 12/24; Dec payment on 2/12, Jan payment 3/17, Feb payment 3/17, Mar payment 5/19. Received temporary proposal from Litton shortly thereafter. My mortgage was interest only 8.875%, 5 year ARM made Jan 07, monthly payment $2300 including taxes and insurance. Proposed payment for three months $1209. I made three payments (June, Jul, Aug) on time. September came and still no permanent offer. Litton told me to make temporary payment of $1209 for September and that my modification was approved.

September 4th: Called Litton to follow up on modification. I was now told that it was denied. The representative could not (or would not) tell my the reason for the denial - only that I was considered for two programs and both were denied. Oh, and I need to make a payment of $8,000 by October 1st.

So, now here is where I stand: the house (bought in 1997 for $127,000, refinanced in 2007 for $242,000 (appraised at $330,000 at time of loan), is worth (per county property appraiser's office) $190,000, but comparables in the neighborhood put it more in the $150,000 range. That's about $100,000 upside down. My husband was just laid off and my daughter started a private college in August, for which I am taking $10,000 a year in PLUS loans.

Needless to say, we're considering walking away.

[Hopefull2009]

I think you need to push for a reason you were denied. You can't really know which way to turn or proceed without that?

[mustleavesoon]

The official letter I received in the mail said: Unfortunately, your loan does not meet the guidelines provided by the investor. We are unable to offer you an alternative workout solution at this time."

[Lhuynh]

Originally Posted by mustleavesoon

The official letter I received in the mail said: Unfortunately, your loan does not meet the guidelines provided by the investor. We are unable to offer you an alternative workout solution at this time."

Call your lender, ask who is your investor. They have to tell you. Why do you need to make a 8000$ payment?

I've been noticing the 3 month trail period seem to not be working, they are using it to take more money from the borrower..