Litton Loan Mod - Urgent Need Help

[MomOf1]

Hi, need some help or input urgently. Litton just called and have asked for some information that I am not sure that I want to supply to them.

A little background. I adopted my son from the foster care system in California. Because he was considered a special needs adoption he gets a monthly stipened until he turns 18. When I submitted my original paperwork I did not include this as income because it is to be used for his needs, and also the IRS does not recognize this as income.

So this morning I received a call from Litton they had noticed this deposit from the state coming on my bank statment and are now requesting that I submitted proof that he will receive this stipened until he turns 18.

My question is this....do I have to submit this or can I protest it? I tried to explain to the person I spoke with this morning, that the IRS doesn't regard this as income, I am not taxed on it. But he insisted that I send it. I am concerned that if I do submit it they will say that I make too much money and deny me the modification or if I don't submit it they will deny the mod.

I don't qualify for the HAMP they say I am already below the 31%, of course that is just with the first, they don't even look at your second which would throw me over the 31% required to qualify for HAMP. So I asked them to modify the loan and move it from an ARM to a fixed.

I would appreciate any feedback or input.

Thank you!

[Evan Bedard]

Hi momof1,

My question is this....do I have to submit this or can I protest it? I tried to explain to the person I spoke with this morning, that the IRS doesn't regard this as income, I am not taxed on it. But he insisted that I send it. I am concerned that if I do submit it they will say that I make too much money and deny me the modification or if I don't submit it they will deny the mod.

I don't qualify for the HAMP they say I am already below the 31%, of course that is just with the first, they don't even look at your second which would throw me over the 31% required to qualify for HAMP. So I asked them to modify the loan and move it from an ARM to a fixed.

I would think you have to send them the proof as your bank statements do show that money coming in each month. If you submit this information they should not count it as income like you has stated..

[davephx]

For HAMP non taxable income is still income.

But your not HAMP so its based on whatever they make the rules to be.

[MomOf1]

Thank you both for your help. I am going to fax over the information tonight with the hopes that they will put this through. I am not holding my breath though. I have not seen ONE person on this site get a modification through Litton.

[heidi79]

Litton was actually doing well with giving modifications before the HAMP mod came out. They were even offering principle reductions and fixing the loan for 30 years, but after the HAMP program has come out, they have been super slow just like the other lenders. Keep persevering, you'll probably have to use your son's income since it showed on the bank statements.

[Evan Bedard]

Litton was actually doing well with giving modifications before the HAMP mod came out. They were even offering principle reductions and fixing the loan for 30 years, but after the HAMP program has come out, they have been super slow just like the other lenders. Keep persevering, you'll probably have to use your son's income since it showed on the bank statements.

Yes I have to agree. It seems that before the HAMP and MHA program came into place loan modifications were much easier to acheive. All these programs seem to be doing is putting homeowners in a never ending trial period....

[MomOf1]

Well news on my part. The day after I faxed the information in on my adopted son's stipened, I found out that they "closed" my modification/workoutplan because I had just filed for BK. Now they are telling me I have to go through the entire process again.

As of next month, I will have been going through this process with Litton for a year. I am not giving up, it just makes me more determined. The whole reason for filing BK was that they wouldn't modify my loan they said I made too much money, that's a joke I am barely scraping by between teh first and the second. All they were doing was moving it from an ARM to a Fixed.

So tomorrow I will fax all of my information again to the attorney's at Litton who are handling "modifications" for those of us who have filed BK's. I will keep you posted. But am not holding my breath. I refuse to lose my house. I wish we would all rise up in mass and start a class action lawsuit.

This is crazy.

[heidi79]

It's very crazy, a process that should be simple and making common sense is made out to be almost an impossibilty, I believe these servicers don't have the motivation, the personnel or the desire to get people through this and out so they can continue their lives.

Keep persevering, hopefully the bk filing will help you in order to get approved.

[aprilware2]

hey i got my final mod papers as of thursday the 22nd and sent them bac on fri 23rd.I got it jus in time before the holidays i can sleep now. I HOPE N PRAY EVERYONE ELSE GET THEIR PERM MOD. I CALLED LITTON EVERYDAY FROM MAY AND KEEP A LOG OF DIFFERENT PEOPLE I TALKED TO.I came to the conclusion all tha reps a litton from different department told me differnt things and the dont see what the other departments see as far as info.

[litton nightmares]

I am STILL working on getting a modification. Regarding payments such as alimony, child support, foster care, adoption/guardianship subsidies, IT IS VOLUNTARY ON YOUR PART TO DISCLOSE THAT OR NOT AND TO HAVE IT INCLUDED AS INCOME, it is NOT EARNED INCOME, it is NOT TAXABLE, and it also is NOT guaranteed to be stable, since each year the rates, guidelines, and so on, are subject to CHANGE. If your earnings are insufficient to qualify, THEN it may make sense to let them include payments you regularly receive, otherwise, I wouldn't. You should tell them that those deposits are for independent maintenance of an individual in your care and cannot be included as "Income"-- it is YOUR option to have child support and these sorts of maintenance payments, included, or not. It may make sense to do that in one circumstance and no sense to do so in another.