Litton Mod Approved

[onelove1]

I need some help. I am currently in a Chapter 13 bankruptcy and I am in arrears with my mortgage with Litton loan, post petition. They sent me an offer for a loan workout and said that they could lower my payments. Right now, my loan was sold to them from Fremont and the interest rate is 10.34%. I do freelance writing to supplement my income, since we have had a pay increase freeze on my job, and one of my biggest clients was slow in paying me, which caused the arrears. Will they modify my loan? My attorney says that they will work with me, but to be honest, I am very scared. They filed papers with the bankruptcy court to lift the automatic stay. The first hearing was postponed because I sent in the modification request. Help! What should I do? I don't want to lose my home.

[Moe Bedard]

Hi onelove1,

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

In order to work with you on the modification the automatic stay would need to be lifted for them to be able to work with you. Your attorney should be able to help you with this.............with a Chapter 13 bk you will be able to apply for a modification..........in some cases they will require permission from the court............so you would need to see if Litton would need that.

[onelove1]

Thanks for your response ***. I figured that they would have to lift the automatic stay. According to Litton's law firm in my town, they are willing to work with me and the court date has been moved to January 22, 2009. Which ironically is my birthday. My attorney keeps telling me not to worry and that I will not lose my home because they would rather work with me than have another empty house on their books. I am just a little nervous, that's all. Do you know how long the modification process is? The paper work was sent in to them about a week ago. I know that for us to come to an agreement, they will have to be removed from the automatic stay.

[Moe Bedard]

The timeframe varies depending on how long it takes to go over the financials to make sure that a modification will benefit both the customer, the servicer, and the investor..............it can take anywhere from 30-90 days from start to finish...........and some have taken even longer.

[onelove1]

Does anyone have any experience with these mortgage-backed securities? From the paperwork I received, the owner of my mortgage is HSBC and the servicer is Litton. My loan was bought from Fremont I&L which went belly-up. I explained previously that I am currently in a Chapter 13 and have some post-petition arrears. I have sent paperwork for a modification. I received an offer from them about a month ago and my attorney forwarded them the information. I am not sure this is backed by Fannie Mae or Freddie Mac. Where would I find this information. Also, do you have any information on this investor--HSBC? Thanks in advance for your assistance.

[Moe Bedard]

If the owner of the mortgage is HSBC they would be your investor then.............neither Fannie or Freddie.

HSBC is a difficult one.......and the only mods that we have seen out of them so far is 6 months at a time and than you have to start the process again.

Please keep us updated and ask questions here in your original thread so that we can follow your story in one place just in case another member may be going through the same.

[onelove1]

***, another question.... Do you know how long Litton takes to do mods? My lawyer sent the paperwork to their lawyer. They also work with a firm. They offered me the workout on behalf of Litton. I am a little nervous about the whole thing. My lawyer keeps telling me I won't lose my home, but I can't be comfortable until I see final documents changing the loan.

[Moe Bedard]

Any questions that you have regarding companies that say they are working on behalf of Litton would need to be directed to Litton.

Try calling
Portfolio Retention to see at what point the process of the modification is in and to also ask your question about the company.
1-800-247-9727 ext. 7719

[onelove1]

***, thanks for your comments. I spoke to someone from a company this morning. I actually received a letter from them requesting three bank statements. I asked her if they wanted the tax returns from last year and she said no. Other than for the obvious reason to see payroll deposit records, why else do they need the bank statements? I already sent them paystubs. I feel a lot better now, knowing that they are not trying to take my house away, but are open to working with me. Thanks for all your help. I also need to do a hardship letter. I will look at the samples you have here and change to match my situation.

[Moe Bedard]

they use bank statements to also check revolving debt.

[onelove1]

I have no revolving debt. I am in a bankruptcy. My husband does, however--3 cards and the balances are low, so the payments are low. She told me that once she receives my paperwork, she'll package it and send it off the Litton. She also said that it will take six to eight weeks to hear back from them. Thanks for all your help and I'll update you once the modification is done.

[onelove1]

All I can say is thank you Loan Safe and God is GOOD. I am in a Chapter 13 bankruptcy and I was in arrears post petition on my mortgage. Litton had offered me a modification back in November and I filled out the paperwork, sent a hardship letter and pay stubs, bank statements, etc. Well, fast forward to March 17, my lawyer called me and said that Litton approved the mod. My interest rate is 4.5% and my payments have come down to $989 principal. I am meeting with my lawyer tomorrow to sign the paperwork and pay one month's mortgage to seal the deal ( my old payment). Thank you Jesus and Loan Safe! My loan is indeed safe!

[Dan Bailey]

Congrats onelove1! I hope it works out well for you!

[Buskerfellow]

Great News! I am working with NACA on a loan mod with Litton and it is good to hear that success is possible.