Litton mod info that I didn't know...

[hlane]

I had been trying for approx 5 1/2 months to get Litton to modify my loan. I was denied after many, many calls and much more frustation then I can express. Litton has never sent me anything in writing and says they will not unless I request it in writing first But thats a whole other subject and I just am done with messing with them about it.
But the reason for my post is because no one at Litton has ever taken the time to explain to me WHY I was denied other than too much income. I have tired and tried to understand how they came to that conclusion but never could.
Finally I got ahold of an ERT rep that wasn't the friendliest but after much probing from me she explained how they reveiwed the request and came up with the denial.
We have an 80/20 loan. The 80% is with Litton and taxes are not escrowed.
When reviewing the numbers the only thing they look at is the payment we pay to them plus any monthly HOA dues compared to our gross monthly income. They do not consider taxes, 2nd mortage, home owners insurance, car payments, credit card payment, basic living expenses....NOTHING other than what we pay them.
WOW, had someone take the time to explain this to me back in Jan when I first started the process it would have saved me a lot of time and frustration
We are just right on the line of the 31%, even $50 higher each month we'd be over that.
Just a heads up in case anyone is confused as I've....if nothing else I thought they'd consider our $350 a month property taxes but thats not the case.

[MomOf1]

I too found out that information after about 7 months into the process, wish I had found this site when I first started then I could have just called the ERT line, instead of spinning my wheels for 7 months. It is frustrating that they do not look at your second (or any other bills or expenses, like food) because if they did I am way over the 31%.

I am currently working with Litton to change my ARM to a Fixed. Not sure if you have an ARM but maybe the will work with you to at least get a fixed rate versus having the interest rate fluctuate every few months.

[hlane]

Originally Posted by MomOf1

I am currently working with Litton to change my ARM to a Fixed. Not sure if you have an ARM but maybe the will work with you to at least get a fixed rate versus having the interest rate fluctuate every few months.

Can you explain to me how you went about getting them to consider this?? Thats basically all I want is a fixed rate so I won't have to wonder every 6 months if I can afford my payment or not

TIA

[MomOf1]

Originally Posted by hlane

Can you explain to me how you went about getting them to consider this?? Thats basically all I want is a fixed rate so I won't have to wonder every 6 months if I can afford my payment or not

TIA

I spoke with a Sean Wilson (sean.wilson@littonloan.com) from the ERT at Litton and explained that at this point if I couldn't get my loan amount modified than I would like them to consider changing it from a ARM to a Fixed.

One thing to note, if you are moving to a fixed your monthly payment will go up because now you are paying towards your principal. But the payment will be fixed for the life of the loan. My interest rate was originally 5.25% for 3 years then moved to 8.25% this past December and had a cap of 11%. I couldn't pay that huge of a difference. So I started the modification process 8 months ago now. After much frustration, I finally decided this past month that in order to keep my home (and that is all I really want) I would have to file for bankruptcy (chap 7 or 13 I haven't decided yet). I had too many other bills and living expenses to pay for and couldn't afford the new payment.

When I asked Sean about moving my loan to a fixed he asked how could I afford that if I was seeking a modification to lower my interest rate. I explained to him that I was looking at filing a bankruptcy in order to keep my home. I have received a modification workout plan from Litton and while the interest was lowered a little (to 7.75%) it will be fixed if I comply with the workout plan (making X amount of payment's for 3 months) which should be completed in October.

Since my credit was already "ruined" with being 2 months behind in my loan payment, filing for bankruptcy will be actually kind of a relief.

I wish you luck with whatever you decide.

[hlane]

thank you for the information! I have spoken with Sean before, he is very nice, I will try to contact him again regarding this.

May I ask how much your payment increased now paying P&I? Also approx how long was it before you got a response from them regarding this request?

TIA!

[MomOf1]

Originally I was paying $1,085 @5% on a loan of $175K, when it reset in December at 8.25% the loan payment was $1,500. Please keep in mind that this was still ARM and includes my taxes and insurance. I pay around $300 per mo for my second.

Now with the "modification" to a fixed I am paying $1,650 at a fixed rate of 7.75% for 27 years (which is the life left of my loan) they would not go for a 30 or 40 year loan.


Hope this helps

[hlane]

Not that it's going to help me any with Litton but out of curiosity I called ERT today and asked the outcome of the BPO that was ordered. I was shocked to hear $140,000! We purchased the house in 12/2005 for $181,XXX. Our 1st is with Litton for $144,XXX, the remaining is with GMAC. I am wondering if my next step should look into a chapter 13 My credit is already shot anyway

[MomOf1]

Originally Posted by hlane

Not that it's going to help me any with Litton but out of curiosity I called ERT today and asked the outcome of the BPO that was ordered. I was shocked to hear $140,000! We purchased the house in 12/2005 for $181,XXX. Our 1st is with Litton for $144,XXX, the remaining is with GMAC. I am wondering if my next step should look into a chapter 13 My credit is already shot anyway

I am also looking at filing a Chap 13, my house went from a purchase price of $230K down to $138K according to the BPO from Litton. If I file a 13 the second will be wiped out and while I would still owe more on my first with Litton than the house is worth it won't be much more and at some point the market will go back up. I decided since my credit was shot anyway it really didn't make that much difference in filing the Chap 13, it is not like I am the only one out there doing this.

[hlane]

Forgot to mention, I did email Sean yesterday but in all honesty I don't expect him to respond

[MomOf1]

I just received in the mail today a signed (by Litton's VP) copy of my workout plan, which to me means that they are finally putting modification through (to new fixed rate). Now I just have to pay the new amount for the next three months on time and I should be finished with this process.

Yippeeeee!

[hlane]

Originally Posted by MomOf1

I just received in the mail today a signed (by Litton's VP) copy of my workout plan, which to me means that they are finally putting modification through (to new fixed rate). Now I just have to pay the new amount for the next three months on time and I should be finished with this process.

Yippeeeee!

YAY!! That is awesome! I am happy for you! How long did it take for you to hear anything from them giving you some indication that they'd consider placing you in a fixed rate after you made the request?
I'm wondering how long I should allow before I take the next step.

TIA

[aprilware2]

Originally Posted by MomOf1

I just received in the mail today a signed (by Litton's VP) copy of my workout plan, which to me means that they are finally putting modification through (to new fixed rate). Now I just have to pay the new amount for the next three months on time and I should be finished with this process.

Yippeeeee!

Have you started your trial yet and you got a copy of your workout returned to you that was signed by litton??

[MomOf1]

Originally Posted by hlane

YAY!! That is awesome! I am happy for you! How long did it take for you to hear anything from them giving you some indication that they'd consider placing you in a fixed rate after you made the request?
I'm wondering how long I should allow before I take the next step.

TIA

During my conversation with Sean he said it looked likely that they could meet my request for moving from ARM to Fixed, I received the paperwork about a week after that and only had a few days to respond. I think it was about 3 weeks after submitting the paperwork that I received the signed copy back from Litton. I have tried getting this moved to a fixed before but they denied me. This time I actually received a copy of the signed form back from Litton. Which leads me to believe that as long as I make my 3 payments on time it should finalize.

I would probably call them this week or next to see where they are at in the process. I personally would call Sean, he so far has been the most helpful.

Good luck.

[MomOf1]

Originally Posted by aprilware2

Have you started your trial yet and you got a copy of your workout returned to you that was signed by litton??

Hi April, yes I have started my trial "modification" and I did get a copy of my workout plan signed by litton.

[aprilware2]

Originally Posted by MomOf1

Hi April, yes I have started my trial "modification" and I did get a copy of my workout plan signed by litton.

Also are you doing your mod by yourself or with and company? Litton told they wasnt going to send me a signed workout with their signature. I sked them that back in May.

[hlane]

This is amazing! I got a call back from Sean Wilson today after sending a second email. We got into a discussion on my modification denial even thought I was just asking them to fix my rate, not even reconsider my mod request. While discussing this we discovered someone they had DOUBLED the amount of incoming coming in per month, they had entered it twice!!! They showed our gross monthly income as over $7000 a month when its really only a little over $3500 per month!! Sean is having me refax paystubs & a bank statement directly to him & they will re-evaluate us for a modification!!! I'm really trying to not get excited but I am hoping & praying things will work out for us this time!

[aprilware2]

Has anyone recieved an statement for August yet? Well of all months no statement for August for myself yet. I call litton they say it will be sent out after I make 3rd payment on Friday

[MomOf1]

Originally Posted by hlane

This is amazing! I got a call back from Sean Wilson today after sending a second email. We got into a discussion on my modification denial even thought I was just asking them to fix my rate, not even reconsider my mod request. While discussing this we discovered someone they had DOUBLED the amount of incoming coming in per month, they had entered it twice!!! They showed our gross monthly income as over $7000 a month when its really only a little over $3500 per month!! Sean is having me refax paystubs & a bank statement directly to him & they will re-evaluate us for a modification!!! I'm really trying to not get excited but I am hoping & praying things will work out for us this time!

Wow, I bet that was a shocker! Hope this goes well for you. Keep us posted.

[nitag]

I haven't gotten an Aug. statement either..I'm not calling till Friday when I make my 3rd trial mod payment - I will ask then..

[aprilware2]

nitag have u recived an workout that was signed by litton well I havent

[NJLitton]

Do the mod trial payments get sent to the same address that you made the regular payment to?

[aprilware2]

I think so ! Well I always western union my payments time. i dont have time for litton to say to they havent recieved my payments and give them an reason to deny my modification

[aprilware2]

Well I recieved my August statement today saying nothing about the new interest rate but the new trial payment of 735.61 . And no late fees. Also stating to comply with my trial modification agreement .

[aprilware2]

Originally Posted by nitag

I haven't gotten an Aug. statement either..I'm not calling till Friday when I make my 3rd trial mod payment - I will ask then..

hey i got my august statement today stating my trial payment

[hlane]

I have a question. Once my trial starts do I need to resend my hardship letter, taxes, paystubs, bank statements, ect when I send in my first mod payment? I've already sent all this in in April and again last week.

Thanks!