What is the first step for me and my mod

[nckmsn]

So today I am 71 days late on my loan with Litton. It has just recently adjusted from 2300 to $2400/mo. Not a big adjustment but the problem is thatI dont have the money for the 2300 payment right now. I work in the Commercial real esatate industry so I am taking a beating. It seems as tough my only shot at making this work would be to modify my loan. I do not know who the investor is on my loan. I appreciate thios service and look forward to trying this process out.

What is my first step in starting an application ofr a loan modification. I have seen a lot of different senarios while searching through the forum. Thanks in advance!!! Also, when do you think a notice of default will be filed?

[nckmsn]

Sorry forgot to mention. MY loan balance is $296,000. The house is probably worth $296,000. Litton paid my taxes last year and I have had a negative balance in the escrow account that they creates ever since. They are probably getting ready to pay this years taxes also. Another note is that I havent filed my 2006 taxes yet but am going to do that on Thursday (tomorrow). All other years have beeen filed. Stupid I know.

[Moe Bedard]

Hi nckmsn,


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

The first thing to do is to write a hardship letter..................

These are what most lenders consider to be generally acceptable hardships....
1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.

here is a link to some examples to help you.............
Examples of a Hardship Letter




Then contact Litton to see what the options are going to be and what they would need you to fax in..........

Litton Portfolio Retention
1-800-247-9727 ext. 7719

[nckmsn]

Thanks for the response. We really appreciate your help! Another idea I had was to mention the recent termite problems that we have found in the home. The previous owner had done some work to remediate the problem but neglected to disclose this to us. Can I use this to my advantage to make the investor not want to take back the house? I can mention that we have had to spend money to continue the remediation of the termites.

Thanks for your help
!!!!!

[Moe Bedard]

That would be a matter between you and the seller, not between you and the investor on the loan.

[nckmsn]

I understand that, but you mentioned that damage to the house could be a hardship. I would think that the investor might be more willing to cut me a break before he took back a house that has termite problems. Am I not thinking right about this? Thanks again.

[nckmsn]

Sorry I thought that you were the one that mentioned that house damage was a hardship. I actually came accross that comment from someone else in the forum.

[Moe Bedard]

They are talking more about things like a natural disaster like Hurricane Katrina that would put someone out of there home.............

all that they are concerned with at this time is what is causing the hardship and what is being done to remedy it moving forward.........

[nckmsn]

Thank you for your help. i will post my letter once it is done. Hopefully this works out for me. I would hate to devistate my family.

[nckmsn]

Thanks for the phone number. I am on hold with the portfolio retention center right now. It has been 45 minutes so far. Is this normal? is there a better time to call?

thanks again for this wonderful service!!!!!!!

[Dennis66]

"I am on hold with the portfolio retention center right now. It has been 45 minutes so far. Is this normal? is there a better time to call?"

The first time I called for my loan mod (I'm through GMAC), I waited on hold for 3 hrs. 45 minutes!

Good luck.

[nckmsn]

holy smokes.........2hrs on hold now. Does anyone know if there is a better time when I will have quicker success at getting someone on the phone? I am on hold with Litton portfolio retention.

Thanks everyone.

[nckmsn]

approximatelt 4hrs now. Should I be doing this differently. Please help!

[Moe Bedard]

call the main number without putting the ext. then.
here is an additional number...........
Default Counseling Department
1(800) 999-8501

[nckmsn]

Okay,

I was finally able to talkto someone at Litton in the Piortfolio Retention Center. I was also able to find out that the investor on the loan is Wells Fargo. I was asked to send in my hardship letter and financial records to the Loss Mitigation Department. I explained that I am an independent contractor for a Commercial Real Estate Firm. They indicated that I would need to indicate this in my hardship letter and send in my last three months bank statements. This raises some questions for me.

1. Do I need to show a certain amount of dollars in my account to make this work better. They never asked for my monthly bills information. If I have to I can get money froma family member to deposit in the acct to make sure this has a better chance of winning this battle.

2. ANy tricks wil th working with Wells Fargo? Also does work in my favor to contact Wells directly or not? Are they hard to work with?



Thanks in advance for answers to my questions. I really want to get this ball rolling. I am late for November January and February so far. When do you think a NOD will be filed?


Thanks

[nckmsn]

Another question

Is it possible that Wells Fargo isnt the investor? I know that Wells FArgo has many loans with a seperate investor. According to Litton, Wells is the investor. How do I go about finding this out. I am wondering if there is a chance of Freddie or Fannie being the tru investor. THis could mean a possible streamline. Maybe I'm just getting carried away.

Thanks

[Moe Bedard]

If Litton has told you that Wells is your investor..............then that would be the investor..............and they will not deal directly with a customer.......they will refer you back to Litton.
The criteria for modification is on a case by case basis and changes regularly............we have no way of knowing what the investors look for to approve a modification...............if you add to your income that you have from outside sources, that wouldn't represent your true income.............and if you received a modification based on that, it would not represent accurate information......which elevates the chance of defaulting again.
You are in need of a modification because your income dropped.

[nckmsn]

Understood. Thanks for the help. Hopefully this works.

[nckmsn]

How does this look? What should I change? Thanks


I am writing this letter to explain my hardships and why we have been unfortunate to fall behind on our mortgage with Litton Loan Services. My wife and I have been working second jobs as necessary to try to make ends meet and pay our mortgage. There is nothing we want more than to keep our house that we love and be able to make our payments. The last thing we want to do is have to move our kids again as our plan was to stay in this house for a long time.
There are a few reasons for why we have arrived at this situation. The main reason is downturn in the real estate market. My income has been reduced drastically. As we didn’t see the economic crisis hitting us like it did we were unable to prepare adequately. While it is our full intention to pay our mortgage we are unable to do so at the current monthly payment. To compound this problem our mortgage has recently adjusted which has pushed us further away from being able to satisfy the monthly payment.
Approximately 1 year ago was when I really started getting hurt by the down real estate market. Since then I have been late every month. Since then my wife has started selling jewelry with a company to bring in extra income. She is doing very well and is seeing a continued increase in her income. She also has started doing web design. She already has two accounts that she is working and hopes to get paid in the near future. I have also started working multiple jobs to keep afloat. I recently started doing contracting work, landscaping, and snow removal to bring in some extra income. With these additional jobs we are able to sustain ourselves but are having a hard time getting completely caught up because of the previous income decrease. With a new start we would be able to make regular payments at the right interest rate.
We really are responsible homeowners that really want to redeem ourselves. With a second chance and our better understanding of what we need to do in the current state of the economy we are 100% certain that we will be successful.

[Moe Bedard]

It looks good................but if your rate is adjustable you may want to indicate that a lower fixed rate would help you long term.

[nckmsn]

Okay

So I have faxed in multiple copies of the documents requested by Litton Loan Services Portfolio Retention. I know need to send the docs via certified mail right? I have read that you should send three copies via certified mail. Should I send these all at the same time or on sepoerate days?

My other concern is that they never asked me to send in my financial docs other than 3 months bank statements. I am a commissioned employee but I would think that they would want to see my monthly expenses. How should I proceed.

Thanks in advance for the help!!!!!


Oh yeah.....you have much better luck getting ahold of someone in Portfilio Retention if you call im the morning. When I called at other times I was on hold for about 4 hrs before I bagged the attempt.

[Moe Bedard]

Just call them to verify that they received everything o.k. and if there is anything else that they need...............then call around 2 times per week for updates on the file.

[nckmsn]

I am in the process of a loan modification with Litton with Wells as the Investor. It seems to me that Obama's plan is not directed to help me due to various reasons. Do you think that this reduces my chances of the mod when compared to my chances before this new plan?

Simply put, how are borrowers that dont fit into Obamals plan affected. Do you think our chances are the same worse or better?

[Moe Bedard]

We will first have to see what the final guidelines are going to be tomorrow..........

[nckmsn]

Agreed, I really appreciate your help. It really has given me hope! I hope to have a success story for us soon.

Thanks again ***!!!!