Help with Litton Loan

[blessnno]

I am new to the site but from the information I have been reading, I believe I can get some valuable information. Our home loan started out with Option One and was transfered to Litton Loan. We have an interest only loan, our loan is for 256,000 in Louisiana. We have been making out payments of 1566 by the hardest each month. Husband is not working full time but is looking for a full time job; I am working a full time job but we have a lot of medical bills. I contacted Litton about payment plans, before I looked at this site. I was told that since we have not missed any payments, all we had to do was make our May payment before the month is out along with a late fee and we would be fine. I asked about how that would reflect on our credit, I was told as long as the payment is done before the month is out everything would be fine. I would like to start discussing a loan modification with Litton, but I don't know if we should right now because I loan is not defaulting; also I don't know how loan modification will effect our credit. If anyone can help I would appreciate any answers. Thanks

[Moe Bedard]

Blessnno,

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

A modification will not impact your credit negatively if you are not behind in payments..........it just modifies the interest rate of the loan but not the terms themselves.......

They will help most of the time even if you are not behind, however, keep in mind that you do have an interest only loan and a good majority of the workouts are done including PITI (Principle, Interest, Taxes and Insurance)

What is the interest rate at right now?
Is it an adjustable rate?
Are your taxes paid up to date?

[blessnno]

Our interest rate is 7.35. Yes, it is a adjustable rate, we still have 2 more years before that happens. No we have not paid our property taxes yet. They are delinquent.

[Moe Bedard]

Just so you are prepared............if your taxes are delinquent...Litton will pay them and then escrow for them......
On a modification the concerns would be that with the household income versus the household expenses which would include the current mortgage payment and the tax amount per month along with the insurance per month.....you would need to show a surplus of at least $100-$250 per month.....
and the modification will be set up with those escrows......sometimes a modification based on that will actually end up being a higher payment......

You can try for the modification and see what type of offer you will receive and if it will help your situation.......

Put your hardship letter into the body of an email and send it to each of the email contacts below..........also call to start the process as well.....they will tell you what they need for the process.....

Hope this helps........
Please keep us posted on your progress........


Executive Resolution Team
Direct: 1-713-218-4592
Fax: 1-713-966-8852

Portfolio Retention Dept.
1-800-247-9727 ext. 7719
1-800-247-9727 ext. 4913


Email Hardship Letter to each of the email addresses below:

llitton@litton.C-BASS.com (CEO)
efolk@litton.C-BASS.com (CFO)
akelley@litton.C-BASS.com (Senior VP)
steven.droddy@littonloan.com (mort retention mgr)
michael.whitfield@littonloan.com (loan retention mgr)


Litton has arranged for CareOne Credit Counseling, a non-profit debt management and financial education service, to assist our customers. If you are interested in more information about this free service, please call (866) 866-6131

[blessnno]

Thanks I will do that. I will keep you posted. Thanks again

[schwefls]

Hi Blessno:

Welcome to our forum. I fought Litton and won, although I am not proud my story differs from you in one way I was seriously past due. The one thing you need to know about Litton, is you need to be patient, persistent and polite. Take nothing for granted. Document all calls, follow them up with a fax and last but definitely not least, call, call, call but always be polite. And one more thing please keep in mind that patience is a virtue and good things come to those who wait. The wait could be in excess of 45-60 days. But never lose touch of what your goal is.