Litton Loans/Helping my sister and brother in law

[nitag]

I am myself working on a loan modification with Avelo Mortgage. I am also helping my sister and her husband with a loan modification with Litton Loans (we had the same broker)!

They called Larry Litton's office and were then transfered to a gentleman in the Vice Presidents office. They explained the situation and the guy told him that after reviewing his credit report(He pulled the credit while my brother in law was on the phone with him) and being that the rate does not reset until October 09 (their papers show Jan 1 09) they CAN NOT offer a modification at this time, but they will lower their payment for 2 years, wouldn't this be a forberance? The guy (Erick Kalvan) asked for a harship letter, 3 months bank statements and 1 months worth of pay stubs so they faxed that today. If they do this for now will they still be able to try for a modification in Jan or Oct?

They have a 2 yrs ARM, interest rate is 9.5% current loan is 435,000 home is in Minden NV. We don't know the current value but a guess would be about 400,000 - 420,000

Here is the Litton guys name - Erick Kalvan Fax # 713-793-4380

[Moe Bedard]

Nitag,
Forebearance actually raises the payment because they are taking back payments and fees and dividing it up and spreading out on a number of months adding it to the present payment. That sounds like if they are going to lower their payment for two years it might be a type of modification that Litton is doing......

If they are late then it would be forbearance, however if they are lowering the payments....then it is not forbearance, where are they putting the money that they are not collecting....are they turning this into an I/O for 2 years...what is the story in a nutshell...

I thought that you were not talking with them.....

Realistically this may be a modification for the short term to allow manageability of the debt until reset...

Find out the gory details kiddo...

[nitag]

I know I know, but she is my sister and she needed help.. So I am helping

They have never been late... Just can't afford the 3800 a month payment..

I will find out more info and post away...

You are a glutton for punishment....you have to make friends at yet another lender too.

You will need to get an Authorization to Release Information to Others from them to speak to the Lender if you go that route....you really are a glutton for punishment....

[nitag]

Oh Heck no... They are doing the calling ect.. I want nothing to do with Litton.. NO CAN DO, Avelo is enough.. I just give them the info and tell them go for it - I am spoon feeding them all the info I have found and find on this fantablous site.....

Oh come on you know you love sweet talking them and then the wonderful expletives that you use after you hang up....

[nitag]

Update:
Still now word from Litton on any numbers ect.. They are calling about 3 days a week..

They did get a response from the qwr yesterday..

Senator Harry Reid also responded to them and sent them to a lawyer in Reno, apparently they have put aside money to help Northern Nevada Homeowners. They met with him last night and he said just by looking at what they gave him there is some shady dealings with the loan, one thing he pointed out right away was an additional $5000 to the broker that isn't legal. He is going to do a full document review and start with sending letters to the broker and Litton Loans. They signed the document for him to talk to Litton on their behalf.. Its not costing them a dime!!!!

I will keep you all updated...

Hey there, I am glad that they are helping folks out there in No. Nevada, as for the document issues, I would have to see them to determine that there was an irregular payment to the broker, it would have to be on the Lender HUD-1 and not on the borrower HUD-1 to reflect as irregular...i.e. was not disclosed properly to the borrower.

However you are an escrow state, do you have the FINAL HUD-1 from the closing, that is the document that you have to work from...stamped True and Correct....

[nitag]

Update: Eric from Litton called and said the modification was approved and they will have the papers in about 7 to 10 days, they will arrive via fedex. Eric said he didn't have the numbers! It comes from a different dept. he was just updating them to let them know what is happening. I will post the numbers when she gives them to me..

[Andrew]

Well congrats on your second modification. Let us know the numbers and when they receive the papers.

[nitag]

They are still waiting on the paper work.. Litton seems to be a lot slower than Avelo was.. My sister is frustrated and has horrible panic episodes over all this. They will not be making the April payment.. they can't... They don't make the money and can't rob peter to pay paul any longer... Hopefully those modifiction papers will come soon... Very soon!!!!

[nitag]

Well those loan modification papers came yesterdsy. Its nothing they can afford!!! Its honestly not a bad modification. 435,000 loan balance currently 9% interest only arm loan to a 30 yr fixed at 7 3/4% with a payment of $3300 including taxes and insurance. They were hoping for something a lot less. I think they are going to walk. I don't know, right now they are going through a bunch of emotions..

[Moe Bedard]

Nitag,

I am so sorry to hear that your sister and brother in law didn't receive the modification they were hoping for.........although like you said this is a pretty good one.

I hope it all works out for them..........whatever decision they make.....

[nitag]

I have a question and I don't know if it can be answered here or not but it's worth a try... They are going to walk and their plan is to be out of the house by end of June or July, they don't want to wait it out till the end. Now for my question. I do not know the NV laws on foreclosure but they own 435,000 on the house, what can Litton do? I have told them they need to go talk to an attorney but I am telling you its like talking to a brick wall!!!

thanks as always

nitag
__________________________
I fought Avelo Mortgage and won!

[Moe Bedard]

Nitag,

The do need to talk with an attorney to find out what they are facing....

Nevada Foreclosure Law

[nitag]

Ok here is an update on this. They sold the house on a short sale for 280,000 - Escrow closed on Dec 24th same day as the sale date.. And it closed in 15 days.. They are now living in another home they purchased before walking on this one..

Anita