Pre-qualified with Litton Loan – what does that mean?

[youngbel]

I have been pre-qualified for a loan modification for Litton Loan over the phone – what does that mean? I have had a BPO ordered based on the information I have provided over the phone. I’ve been trying for a loan mod with Litton for some time, am behind and in default on my loan. I had a package/mod prepared for presentation to the investor back in March, but it was scrapped when Litton went to its new system based on the Obama/MHA plan. I initially did not pre-qualify when the new system went into effect, because Litton never asked me what my income was and put in the wrong income (not the income I provided and documented for them for the proposed loan modification package under the old system). What can I expect at this point? I posted some questions under a separate thread on this forum, but these are questions that have not been answered. Any help/insight would be greatly appreciated. I am self-employed in case that makes any difference.

[Evan Bedard]

Hi youngbell,If they say you are prequalified that usually means you still most likely have quite some time before a final decision. It should be a good thing and hopefully will come back from the investor approved!

[youngbel]

Hi Evan:


Thank you so much for taking the time to reply and to give me a clue as to what is happening. I’ve been at this so long with Litton and they’ve changed so much that it is hard to understand what things mean these days. What I understand is that I have been pre-qualified by Litton for its modification program based on the Obama/MHA guidelines. Is it possible that they might offer me a trial modification based on that and review the documents and verify income during the process? By the way, I am behind on my mortgage, if that makes any difference.

[Evan Bedard]

Yes it is very possible that you will be offered a trial period based on the MHA program. Many homeowners here who have qualified are currently going through this trial period.

Keep us posted on your progress!

[nitag]

Originally Posted by youngbel

Hi Evan:


Thank you so much for taking the time to reply and to give me a clue as to what is happening. I’ve been at this so long with Litton and they’ve changed so much that it is hard to understand what things mean these days. What I understand is that I have been pre-qualified by Litton for its modification program based on the Obama/MHA guidelines. Is it possible that they might offer me a trial modification based on that and review the documents and verify income during the process? By the way, I am behind on my mortgage, if that makes any difference.

I just finished my trial mod with Litton and they did it under the MHA guidelines. 31% of my income. 5 yr plan at 2%, increases 1% a year till it will cap at 5.13% - Income was verified by paystubs.. All in all it was stressful but I was lucky enough to move quickly. Faxed them info in April, was approved in May, June, July and Aug were trial mod payments. I am told my mod is complete and I should get paper work in a week or so. We shall see. Litton is showing me 2 months behind and they did report as such. Credit is now tanked.. Oh well!! My payments went from 2580 to 1876.. All in all it's a good deal.. We shall see what happens in 5 yrs.. I can only recommend you call and call and then call and get what you were told verified.. Everyone was very nice and so helpful... Good luck to you... and keep up the fight for your home...

[youngbel]

Hi Evan and nitag:

Thanks so much for both of your responses. I have separate questions for each of you:

Evan:
- Will Litton most likely want to review all my docs first before offering a trial mod? Or, since I am pre-qualified for the Litton MHA-like program, is is possible that they would send an offer and review docs during the process? It seems like Litton has been doing it both ways, but I am not sure. And frankly they have some much documentation gathered on my during my various interations of loan mod requests, both before the new system and after, it seems like they should know more than enough on me...probably even what brand of food I buy for my cats...

nitag:
Thank you so much for your comments. It is encouraging to actually hear from someone who has received a mod from Litton with those type of numbers! I've run those on my own against my income and everything I come up with indicate that Litton should easily be able to accomodate me without eating principal (only some of the exhorbitant interest my my elevated payments on which I am behind). I am self employed and actually have been in communication with baileys dad under a sepapate thread. He has been very helpful from the self employment income perspective. What I would like to ask of you is this: is it 31 percent of your gross income or 31 percent of the net? I've tried reading up on this but this is not clear to me. Also, did they initiate the mod with you or did you initiate a mod with them?

Thanks for both of your input and time take responding to this. Like I said, I've been at this for some time, and have been through so many different iterations with Litton, but I think both I and my loan are appropriate candidates for a modification, the loan as it is in no way meets the current market rate for mortages (way too high) and I need some sort of workout at this point in order to become current. So, yes, I will keep fighting!

[nitag]

It is 31% of my gross.. I wish it was net but it's not... I contacted Litton I think in March and they said hold off till April because of the new guidelines that were coming into place. April 6th I think I faxed them everything they wanted. I had approval of prequalification in May and June I started my trial payments.. I am now done with them and just waiting to see what happens next.. Bailey's Dad has a lot of knowledge on the self employed aspect of it.. He is a good one to get advise from...

[youngbel]

Hi nitag:

Thanks so much for taking the time to reply -- I really appreciate it! Even 31 percent of my gross would be a much appreciated drop for me, or even dropping the interest rate to the 5 percent range. Thanks for the insight on timing as well - that is helpful so I can know what to expect. What you say about Litton saying to you to wait until April makes sense. I know I had a proposed mod ready to present to the investor back in the beginning of March, but then they told me that all mods were on hold until the new system went in place in April, and that the mods in progress would be picked up where they were left off. That didn't really happen with me but hopefully this time it will work out. I appreciate everything. baileys dad has been very helpful in offering insight on self employment income. What department did you deal with by phone during the initial pre-qualification process? I was dealing with Loss Mitigation directly but now it seems like Collections is fielding the calls.

[Evan Bedard]

Hi youngbell,

Evan:
- Will Litton most likely want to review all my docs first before offering a trial mod? Or, since I am pre-qualified for the Litton MHA-like program, is is possible that they would send an offer and review docs during the process? It seems like Litton has been doing it both ways, but I am not sure. And frankly they have some much documentation gathered on my during my various interations of loan mod requests, both before the new system and after, it seems like they should know more than enough on me...probably even what brand of food I buy for my cats...

What department did you deal with by phone during the initial pre-qualification process? I was dealing with Loss Mitigation directly but now it seems like Collections is fielding the calls.

I'm sure they have already been reviewing your information and hopefully you too will be offered a trial period soon. Just stay persistent like Nitag said keep calling and calling until you get the help you need.

I would also suggest to deal with Loss Mitigation because all collections will do is try and squeeze all the money out of you they can..

[youngbel]

Hi Evan:

Thanks for the advice. Although there was not really anything wrong in my latest converstation with collections at Litton, they really were rather aloof and snotty to me, and frankly not very helpful. I will call Loss Mitigation directly in the future.

[Evan Bedard]

Your welcome youngbel.

Good luck and keep us posted!

[youngbel]

Still waiting a decision from Litton on my modification. I called Loss Mitigation directly, but the call rolled over to Collections (I have had that occur previously), which then transferred me to foreclosure department. Foreclosure said the request is still being reviewed and that no decision has been made. COnfirmed that they have all my docs, and that no other docs have been requested (at least at this point.) I plan to call Loss Mitigation later this week and hopefully get through to them directly. Any thoughts on how often I should be calling, and if I should be calling another department instead of or in addition to Loss Mitigation, such as the ERT department? I get nervous whenever I don't get through to Loss Mitigation -- I have had trouble with this in the past, and have been given incorrect information when I don't talk to Loss Mitigation.

[nitag]

Call the ERT Dept. 713-218-4592

Don't ever speak to the yahoos in collections.. They are there to collect..

If you want to talk to the mod dept after you talk to the ERT Dept have them transfer you... Remember to always ask the dept you have since during peak call times your call can still get routed to the wrong dept..

[youngbel]

Hi nitag:

Thank you so much for your response to this. I will call ERT in the morning. I KNOW I was routed to collections today, even though I called Loss Mitigation directly, and then forwarded to foreclosure and neither of them get it. All they do is reiterate how much I owe, why did I become delinquent in the first place and am I calling to pay all my past due. What I see from various posts is that the people who have been successful at mods with Litton ALL worked with ERT. Thank you for taking the time to respond.

[youngbel]

Just wanted to post an update on my progress with Litton and a loan modification. I spoke with Loss Mitigation today and my file has been assigned to a processor named Ms. Duran. I was told that the review cycle takes 30-45 days once it has been assigned to the processor. The processor reviews the file to make sure all documents are there. If everything is there and it squares up, it is then forwarded to an approval team. The processor is supposed to contact me by phone and letter if anything is missing. Since this file was submitted back in August, my guess is that they will want to see current check stubs/bank statements so I am prepared for that -- been keeping copies of all checks for last two months (I am self employed). Anyway, just wanted to keep everyone updated and thought that my experiences might be useful to others in the process. I've been at this process for nearly a year now so please keep your fingers crossed for me!

[nitag]

youngbel be prepared for a wait.. I've been going at this since May... I was told today that I am in final stages and my file was worked on on Oct 7th... She actually called it my business and some changes were made to it.. Lets see what they changed.. She didn't know... I am told it could still take some time.. Now I call weekly for updates and I'd recommend you do the same..

[youngbel]

Hi nitag --

Thanks for letting me know what is happening with you. Hopefully it will be finalized for you sooner rather than later. I wll keep you in my prayers...

[youngbel]

Very good news for me today! I spoke with Loss Mitigation and a trial modification package is being prepared for me. I was told that the request for the package was generated on 10/24 and that it should be processed and sent out 5-7 days from that date. The rep I spoke with said she had the details, but could not yet disclose them to me until the package is actually sent, as there sometimes are changes to the trial modification between the time the request is generated and when it is actually sent. But the good news is that I am getting a trial modification package. I am thrilled...

[nitag]

Youngbel that is great news.. And I have some too.. I got my Final Mod Paperwork.. It took just about 6 months but I got it and am thrilled with the terms..

Anita

[youngbel]

Hi nitag:

Congratulations on receiving your final paperwork for your Loan Modification! Glad to hear that you are happy with the terms as well! I will post details on my trial mod once I actually receive the paperwork. And thank you so much for your support...

[youngbel]

Just received my papers on Friday 11/6 for my Trial Period Plan and I am thrilled with the initial payments -- approximately half of my current mortgage payment (including escrow)! There are some qualifying statements in the letter such as "you may qualify" and "if we are unable to modify your loan under the terms of the program" (this is definitely a HAMP/Litton offer -- Trial Period Plan and cover letter state that). The only initial "hitch" was that I received the letter from Litton after close of business on 11/6, and they wanted the signed Plan and first payment no later than 11/7! Litton offices were closed on Saturday (I guess for the holiday) so I ended up sending the first payment 11/7 via Western Union Quick Collect, faxed a copy of the receipt and signed Plan to Loss Mitigation and then overnight mailed the signed originals and Western Union receipt to Loss Mitigation. But other than having to run around at the last minute to comply, I am very, very happy with the Trial Plan offer.