Litton Loan Sucks!!

[Zeke the Plumber]

Hello - this is my first time posting here. Usually, when dealing with Litton Loan, I already know that I'm not going to get any help from their so called "Loan Counselors", but I call anyway then sit n stew when my Loan Counselor turns out to be yet another bozo. Today, however, is the final straw. Does anyone know what the "formula" is for a loan modification? The loan I have was originated by Countrywide, who turned around and sold it to Litton Loan. The loan is a ARM with impossible-for-me-to-meet payment increases. The final one will hit me next month when the loan resets to $4000+ a month!!! I started out at $1800 ..... My credit is bad, really bad, FICO score is in the high 500s so a refinance is out of the question. The house I live in is worth a lot more than I paid for it even in this market. Loan balance is $375K with a second loan of $150K (which I used to buy another property, not fritter away!) so total loan amount is $525K. The house would probably sell for around $700K as a very low guesstimate because several properties in my neighborhood have sold for over a million. Litton Loan seems determined to lie about sending out paperwork to me - after 3 weeks I am still waiting for the loan modification paperwork. The loan counselors that work at LL have to be among the snottiest I have ever encountered with one particular LL telling me today that she will not divulge the "formula" I have to meet in order to be considered for a loan mod. I gave her a set of numbers that represent my income and outgo and she tells me I don't qualify because I am in the negative. Duh. Of course I am, stoopid!!! I can't afford the $3500 Litton Loan is gouging me for now, let alone $4000. (Illness, by the way) So, then for the heck of it, I have her fudge the numbers and she then tells me that I don't qualify because I have enough money coming in and am now 'Positive'. I'm positive alright - positive that Litton Loan's loan counselor has sawdust where her brains should be.

I don't want to lose my home - it's all I have. What advice would you give to someone like me who is 3 payments behind (over $11000 in the hole today), unable to afford this ARM with a reset next month to $4000? Please don't advise me to sell - nothing is selling here. I would rather get foreclosed upon than to let some bottom feeder come up and snatch this house from under me for $525K. Thanks for listening.

[Moe Bedard]

Thanks for sharing your story. Looks like you are one of the many that has gotten stuck in the proverbial hamster in the wheel in trying to get a loan modification. As you already know you're not alone and this is nothing new.

There are no public guidelines as to what can be done during a loan modification. But what needs remembered is that this is loss mitigation for the lender and not for the borrower. So, when they look at a sitution and size it up, They determine what is my loss going to be if I don't work with this borrower and offer them a loan modification. You made a key statement about your equity. In their eyes they would get their money faster and all of it iof you just sell or they let it go to foreclosure and then unload it at auction.

I have heard some good things and have had some personal good experiences with Litton Loan and also terrible ones. Some forum members here have been contacting the CEO's and CFO's of the companies to get an answer or help.

This forum is for people who want to save their home and not sell, so there will be none of that around here.

Have you tried a non-profit or legal aid lawyer in your area to assist you?

[Zeke the Plumber]

Thanks for taking the time to reply.

No, as of today I haven't consulted with a lawyer but I was considering it earlier this afternoon. Once I began to realize that the loan mod I need is not going to go anywhere without a fight, I began thinking about lawyers. What is the best way to find the sort of legal aid lawyer you describe? I am just so disappointed at the cavalier attitude of these lenders - it seems as though they just don't want to help. My only recourse is going to be having to go back to work and pay $4000 for a year until I can refinance .... my credit is so bad that the scores are going to have to go way up before any other lender will touch me. You're right - it IS a lot like being stuck in a hamster wheel but losing the house is not an option right now. I have put too much into it.

[Moe Bedard]

Let me know what state your in and I'll see what I can dig up and get you some links and numbers.

[evel1999]

We, as homeowners, are in a real mess and trying to help ourself out of it is very hard and frustrating. We have to keep searching for an answer to our particular situation. There is a lot of help offered on this web site, and I, like you are working on saving my home. I hope we can find a way to accomplish this. If we can't refinance out of it, then a Loan Modification would help, but it seems most of the companies are very hard to work with, especially trying to do it ourself, but some have had success, and I find that to be very good news.