Litton Loan - In Forecl & Mod Process

[Kim_in_NY]

HPF - Foreclosure Prevention Counseling at 888-995-HOPE

I spent 1.5 hours on the phone with this organization with a credit counselor.

They are not able to help me.

Their recommendation to me was to lower the selling price of my home and try to get out of it with some of the equity.

They confirmed that the investor has the final say and does not need to modify.

I asked her about refinancing through Fannie/Freddie or HUD and she explained since I am more than 4 months behind that it would be a barrier.

Thats it for now. Another door closed.

[so-cal-gal]

I'm sorry Kim. I'm just thinking that you now need to concentrate your efforts on the options you DO still have.

Your loan where Litton services but CW holds the note could still be affected by that CW CA AG settlement.

See if the information I provided can be useful to the attorney. I also found still another case where CW is pulling a stunt on implementing a mod they issued. Months after the fact, they claim they made a math error. Right. That needed to be identified during the verification checking. To claim it later is not valid. They already have a contract situation, a contract THEY issued. Contract law is broken with their refusal to honor that contract. Plus it is another breach of the settlement agreement reached with the CA AG.

Sooner or later, someone is going to submit a suit to that court in Los Angeles where the settlement agreement is filed, asking for a contempt of court/breach of settlement decision, especially in these cases where they issued the mod contracts and then refuse to honor them. Then an injunction should be in order. It is only a few hours driving time from San Diego to LA.

I wonder how far that situation would ripple thru Countrywide/BofA?

Could that also effect cases like yours too? Who knows? (You could ask the attorney you are seeing if your case and others he represents would be affected by a contempt of court in the CA AG's case. I know that NY did not join the suit BUT there are significant clauses in the settlement that were to be applied NATIONALLY.)

[Walking Away]

Kim, to do a refi you need to be current; that's why delaying with Chapter 13 reorganization might be best bet if you can't sell. But don't give up-- lots of investors who were not modifying last year; are now modifying and many started modifying the past few months. Every week more and more invester pools are allowing for loan mods; so any kind of delay gives you the best shot of an eventual loan mod. The gov help line told me to try a short sale; I fought for loan mod for 15 months and finally won after being 8 payments behind. If selling is best option; I posted a link for Trulia.com so you might want to double check the recently sold home sales in your zip code; to make sure your realtor has a realistic asking price. Here's link again:

Mineola Recently Sold Properties — Trulia.com Just plug in your zip. If your realtor contract is almost up; you can always lower price 10% and try for sale by owner. You said a lot of people have come through; so maybe it's simply not priced right. If realtor contract is almost up; wait it out and then lose the realtor. You could lower price 10% and save the 6% commision. I used to flip homes--one of the keys is to cosmetically make the front entrys look nice--the first thing people see is crucial. You might just need the right buyer and a slightly lower price. Good luck--hang in there and don't give up

[Kim_in_NY]

Walking Away - thank you for the info . I used the website you provided and it seems our selling price is in line with other houses in our area that sold recently. I truly hope the investor pool on our note opens to allow modifications. That is my first choice.

so-cal-gal - I printed both documents you provided regarding the CW CA AG complaint and settlement judgement and provided that to the Attorney last night. He spent a few minutes going over it and said he would read it in more detail to see how he might be able to utilize it not just for my case but for the countless others he is representing.

I did not sign with him but likely will today, even though I have an appointment with another Attorney Wednesday evening. I liked him. He is truly outraged at what is going on with investors and mortgage companies not allowing modifications. This was not a put on either - he told me several stories of cases he has going on right now. He said these companies (BofA particularly) took government stimulus money to get their companies on the right track and are now not allowing modifications.

This Attorney explained the cost of his representation is broken up in payments every 6 months or so. The cost will be approximately $2500 every 6 months. The process can take between 18 months to 2 years.

He explained an answer needed to be filed on the summons within 30 days and we passed that timeframe. We are closer to 60 days at this point. I told him we hadn't been to an Attorney because we were trying to get the modification and were given the run around. I have all the documents proving that. He said that would be to our benefit.

So the process at this point is as follows (if I am reading my notes correctly):

1. File an answer
2. Attend the settlement conference
3. Motion a summary judgement
4. Appoint a receiver? (cant read my notes!)
5. Referee's hearing
6. Motion for summary judgement

Hopefully the other side accepts the answer as timely. If not and they reject the answer he would need an 'order to show cause'.

All in all this will give us time to save money, keep the house on the market to sell at a reasonable price (no short sale yet!) and put me in the position to buy a more affordable house should this end in foreclosure in the next 18 months to 2 years.

The Attorney did think we had a good shot at a modification based on a few particulars of the original note so it may never come to the above and again, that is my first choice.

After he reads the CW CA AG info he may have some additional ideas for us as well as the other people he represents.

I will update as I get new information.

[so-cal-gal]

Hey Kim,

Look at my posting just before your latest. It raised an issue that attorney may want either to help you or the others he represents. A potential CONTEMPT OF COURT against CW/BofA in the existing CA AG case might have FAR-RANGING ramifications for the CW/BofA turkeys we are fighting against.

It is worth asking.

Best of Luck!