Req'ing Mod from Litton & GMAC...just starting

[hlane]

Hi everyone!! I am thankful I have found this board as I am in need of help!
A little background, in 2003 we filed BK 7 that included our previous home. Everything went smoothly with that and we lived in an apt rental for approx 3 years. We have two children who were going to be starting school and we had outgrown our apt so we decided to purchase a home again in 2005.
We were approved but were mislead on the terms of the agreement until the day before closing. At that point we had not many option other than closing on the home as we were packed, and expected to move out of our apt the next day. We went though with the purchase of the home and am now, 3 years later regretting our decision from a finacial aspect.
We love our house though and it truly is a home and want to keep it.
Here is our information.

Litton-1st mortgage
30 year Arm, has already reset and is now at 9.25% for next 6 months
interest only for first 5 years
Princial kicks in at 5 years
Interest cap of 13.865%
$144,443.30
Approx 45 days behind currently, have been late pretty much every month since 2006
***************************************
GMAC-2nd Mortgage
30 year fixed- 11.55%
$35,580.15
Approx 30 days late, have been current off and on since 2006.
***************************************

I emailed the following hardship letter to Litton yesterday.

To Whom It May Concern:
We are writing to you to explain our current financial situation that has caused us to default on our loan agreement. We don’t want to lose our home and will do anything we can to work with you to remedy the situation and find a solution that will benefit us both. We first became delinquent on our mortgage payments due to a decrease in income due to an auto accident in 2006. Since that time we tried to play catch up but then have suffered several occasions of my income being unsteady due to being self employed. Due to the shaky economy my business has suffered moments of uncertainty but has since turned around.
In addition to the stabilization of my self employment I am now also picking up a second job and we are cutting back on unnecessary expenses as a family. We are now in a better position and would like to work out a plan to begin making payments current again and stay in our home. We are hard working, responsible individuals willing to work to keep our home. We would appreciate it if you would consider a modification to our existing loan terms in order to lower the monthly payment and include some or all of the past due amount. We are asking that you can provide us with a lower fixed interest rate that includes principle and interest for the duration of our loan on what is now an adjustable rate, interest only loan, as that will provide us with the long term security of knowing we have a payment we can afford to maintain. We have created and implemented a new budget for our family and we are confident that we would be able to meet the new, lower monthly payment every month without fail. We would appreciate any help or suggestions you could give to us regarding this matter. It’s an extremely difficult time for our family and we’d really like to get the issue resolved as soon as possible.


Does that sound ok? I am thinking I should wait and deal with Litton before contracting GMAC, do you agree?
I am very scared and nervous. My husband has always been the ones to handle our finances but is to the point of wanting to just give up because he's frustrated and thinks we'll have no luck with a loan mod request. I am willing to fight and do the leg work but just scared as he had always handled this kind of stuff before.

[hlane]

In regards to this I have one additional question & concern. I am self employed, I provide childcare at home. I did see when they will request paystubs which of course I do not have. GMAC does have a note on the paperwork I have printed off their website that states "if self-employed, a current income statement, balance sheet, statement of owner’s equity, and a 6-month profit and loss statement".

I do not have all of those things or even know what they are asking for. What I do have is copies of the cashed checks I am paid with, copies of bank statements that support that those checks were put into my acct on a regular basis along with tax returns for the last two years showing my income. Do you think this would be sufficient?

TIA!

[Dan Bailey]

hlane,
Glad you found the forum and posted.
It is scary at first, but if you keep up with anything you'll be a pro in no time!
Your hardship letter sounds good, short and sweet. And dealing with your 1st before the second is a good idea too.
With the tax returns, copies of bank statements and copies of checks, you'll be ok with proof of income. Just dont send originals because more than likely they will "lose" copies on a regular basis when you send them.
Try to send everything certified mail, to protect against the "never received your info" wall the lenders sometimes throw up.
It is a long process, but if you love your home, it is worth it. Nothing is going to happen overnight..and it may get very frustrating at times...but you can do it!!!Don't worry too much about not ever having previously done anything like this.....most of us hadn't in the past either.

Good luck, Hang in there and Keep us posted!!

[hlane]

Thank you so much Dan!

[Dan Bailey]

No problem hlane.....ask any questions you have. Moe and ***, Andrew and prof. Shays are very knowledgable on these subjects and will do their best to help you as you go along.

[hlane]

How long is it normally after emailing the hardship letter that they will contact me or should I contact them? If so, how long should I wait? I emailed the letter late last night.

Also I ran our numbers and until I start my part time job, which begins in a couple weeks, we are negative about $250 a month. I saw someone mentioned they are looking for a couple hundred surplus each month. I am wondering how this will impact our situation.

[Dan Bailey]

hlane,
Theres no telling what the investor or servicer is looking for really. Each instance has been different it seems.

Today is a fed. holiday, so I wouldnt expect an answer today for sure...keep contacting them regularly to check up on it. Also, sending a copy of the letter certified mail would help. That way if they say the "we never got it" phrase, you have some proof.

[Moe Bedard]

Hi hlane,


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

You would need to call and get the process started with Litton............
also with today being a holiday.............most banks and servicers may be closed.
Litton Portfolio Retention
1-800-247-9727 ext. 7719

[hlane]

I did call and they are not open today. It didn't even occur to me that they would be closed....opps.
Thank you both!

[hlane]

Just updating...I just got off the phone with Litton. The lady was very friendly, which was my biggest fear, them being nasty about the situation but thankfully that wasnt the case. She pulled up our information and I explained I was requesting a loan modification. She asked if we had paystubs or were self employed. I told her I was SE but my husband was not. She gave me a the fax number of 713-314-4705 and asked me to fax our hardship letter, one month paystubs for my husband and 3 month bank statements to verify my income. I asked if they'd like the last year or 2 of taxes and she said that would not be ness, the bank statements were enough. She said there is an expense worksheet on their website I need to fill out as well. She said once my fax is recieved someone will be in touch with me in approx 3 days and then I should expect 4 to 6 weeks for a turn around on the review. I am going to fax this info ASAP, keep my fingers crossed, and pray!

[hlane]

Updating again- We faxed over 33 pages to Litton today (2 pay stubs, hardship letter, 3 months of bank statements) to the number given to me yesterday, 713-314-4705.
I just called to check to make sure they received my fax. The lady I spoke with in Portfolio Retention, Peggy, said that fax number I had been given was to the collections department. She said it would take several days for collections to forward the fax to their department.
She was very nice and gave me her direct fax number and asked me to just refax it to her.
She stated all she needed was the hardship letter and one month bank statement since my husbands pay check is direct deposited into our joint bank account.
She said to give her a call back in about 24 hours and she should have my account documented that she recieved the fax.
If I call back tomorrow and have any issues I will just mail the docs certified but hoping I don't have to do that.
I did ask who our investor was, she said she didn't have that information

[Moe Bedard]

sounds good...........



Keep us posted.........

[hlane]

UGH!! I am annoyed. I called GMAC because we have yet to pay our Jan payment and I wanted to let them know I'd be sending it in next week. While on the phone I decided to speak to them regarding having my loan mod, they said I am not even elgb until I am at least 30 days behind. So if I pay my payment next week then I cant even request it. Do I have any other options?

TIA!

[hlane]

Just spk w/Litton..paperwork was received and is in review, has been assigned to Krystal Martin...was told to allow 60 to 90 days

[Dan Bailey]

hlane,
When you called GMAC, wa it to the collections dept? Alot of times those phone people will say anything, they just want to record it on their computer screen that they collected. You may be better to contact their loss mitigation or home retention dept. to ask questions about mods.

[hlane]

I've called back, to that actual dept, they wont speak w/me...they keep pulling my acct & then transfering me. I've read about people calling HOPE, wonder if I should go that route...if so do you know the number I call?

[hlane]

I found the number to HOPE and just spent the last hour or so on the phone with them. It was a great experience, very friendly and knowledgeable. Took all of my information and has submitted it to GMAC.

[ummuth]

please contact Litton Executive Resolution Team (ERT) 713-218-4592 and continue to be persistent and polite.

[hlane]

Spk w/Litton again...they say they have everything they need and its in review to call back in a week or so. I will be calling back on Wed

I spk to Hope on Thurs and provided all the info for a loan mod for GMAC...wondering if it's too early to start calling them (GMAC) to check on things

[Abarnes]

I just spoke with Litton, my loan is also assigned to Crystal Martin-I asked if I could speak to her and was told she does not take calls, he said my loan was waiting for appraisal and then would be forwarded to the loan mod dept. I questioned him and he didn't seem to like that, because I know that a BPO (appraisal) has already been done, so what do I do wait, wait, wait. It's so frustrating, we want to put the house up for Short Sale if a mod dosen't work-I can see the writing on the wall-April 30 is our sale date-It's most likely going to take that long. Sucks!! I'm going to call again on wed, and hopefully get a nicer person. One can hope.

[hlane]

Just spk with Litton this morning. They have ordered an appraisal on the property, said that takes a couple of weeks then the review will take an additional two weeks or so.
This is a good sign right?? I am hopeful!!

[hlane]

GMAC still hasn't rec our info from Hope as of today

[hlane]

Just an FYI in case anyone is dealing w/Litton. I have found if I call in the afternoon, even if I am entering loss mitigations ext, that my calls are being sent to the collections dept. These people are not very kind and are difficult to deal with. If I call in the morning I get some in the loss mitigation dept, I will be doing that from now on.

[hlane]

Litton is telling me they have ordered an appraisal on our property as part of our loan motification request. Does this mean we have a pretty good chance of a loan modification being approved? TIA

[Moe Bedard]

They order these in every case................it is part of the process so that the investor can see what direction is best for them.


Please keep ask any questions that you may have here in your original thread.