Litton Modification Paperwork?

[bayside]

Do I have to be late on payments to get a loan modification? We have depleted our savings and I know that I will be late next month, so I want to get started on the process now.

Also, how do I get a loan modification package? I have my mortgage with Litton.

Thanks!

[bayside]

Does a short sell affect a person's credit rating?

If a person chooses to do a deed in lieu of foreclosure do they just hand the property over to the bank? I live in the state of Florida, would I have to ever repay the bank if I chose the in lieu of? I am honestly thinking about handing the house over to the bank. I just want to be able to pay my bills without any stress.

My mortgage company is Litton. Does anyone have any experiences with them regarding short sales or deed in lieu of?

Thanks

[Moe Bedard]

Welcome to the community!

No you do not have to be late for a loan modification. You need to contact Litton and ask to speak with someone about a loan modification. You will need to write hardship letter and get your financials together also. If you look in the homeowner toolbox to the left, there are many tips and help to assist you.

Its good you are getting started now.

Litton Loan Servicing (800) 999-8501 or (800) 548-8665
Fax (713) 966-8820
4828 Loop Central Drive
Houston, Texas 77081-2226
Web: https://www.littonloan.com/index.asp

Loss Mitigation Department Hours:
Monday Eastern: 9 a.m. - 7 p.m. Central:8 a.m. - 6 p.m. Mountain:7 a.m. - 5 p.m. Pacific:6 a.m. - 4 p.m.
Tuesday-Thursday Eastern: 9 a.m. - 9 p.m. Central:8 a.m. - 8 p.m. Mountain: 7 a.m. - 7 p.m. Pacific: 6 a.m. - 6 p.m.
Friday Eastern:10 a.m. - 6 p.m. Central:9 a.m. - 5 p.m. Mountain:8 a.m. - 4 p.m. Pacific: 7 a.m. - 3 p.m.
Default Counseling Department representatives are also available most weekends on Saturday from 8 a.m. to 12 p.m. and Sunday from 10 a.m. to 2 p.m. (CST).

[Moe Bedard]

Most lenders and servicers require you try and short sale the property for a certain amount of time befoire they wil offer you a deed in lieu. A deed in lieu is hard to some by these days and most likely wil alsways involve an attorney.

A short sale will afect your credit by how late you are when the home is sold and also they may 1099 you for the difference in what you owe and what it is sold for.

[bayside]

Thanks Moe!

[schwefls]

Welcome to our forum bayside:

I am a Litton customer as well, I was succesful in getting a lon modification from them but you must have lots of patience, persistence and your boxing gloves on. I am sure you can do this. Know that we are here for you and we have your back all the way.

[bayside]

Well, I called Litton and the man I spoke with told me that they couldn't do a loan modification for me because I don't have an ARM and that my interest rate is already too low. My interest rate is 7.8%

I then asked if they would drop my prepay penalty if I could sell my house. He said they couldn't do that either. I was thinking that I could POSSIBLY sell it for less than others in my area if I didn't have to pay them a 5% prepay penalty. I just want to be able to pay my monthly bills and pay this loan off one way or another.

I can rent a place much cheaper than what my mortgage payment is. Insurance, taxes, gas and food prices are killing us. We do not have any credit card debt or car loans. My husband's hours have been cut dramatically and due to the economy I think they will be cut even more.

Oh, they did spread my escrow shortage over a 36 month period. Like that's really going to help.

Any advice? A short sell? I want to get out of this house that I can't afford any longer.

Thanks to all of you for your help.

[bayside]

OK, I called Litton back and spoke to another person (in collections). I told her that I wanted to pay the loan off and that I wanted them to get their money, but she suggested a short sale and that way I wouldn't have to worry about the prepay penalty. She told me to contact an RE agent and put the house up for sale for at least a month. If the house didn't sell then I could proceed with a short sale. She told me that I could give a letter of authorization to the RE agent and that the RE agent could contact Litton. Does all of this sound correct? Then she mentioned the tax liability. I asked her how much that normally is and she didn't know. Could someone please tell me the percentage/or amount that I would have to pay to the IRS for a short sale?

Now my last question...how do I find an RE agent in my area that knows how to handle this?

Thanks again

[Moe Bedard]

Bayside,

Yes that information is correct as the lender will require the house to be listed. You can ask Litton for an agent referal in your area for the Short Sale, it is better to have an agent that they work with already....it makes the process go much smoother......

These two reads apply, but you would need to consult with an Attorney or a CPA to know what the IRS will do......

Mortgage Forgiveness Debt Relief Act



Florida Foreclosure Law

[bayside]

Thanks ***! That's very helpful. I will call Litton to find me an agent.

[Moe Bedard]

You are welcome......

Please keep us posted on how it goes.....

Good Luck!!

[bayside]

What paperwork will Litton require from me for my modification? I am waiting for the packet to come in the mail.

Also, I don't have a lot of loans or debt...most of my income goes to gas, food and car insurance (I have a teenager). Can I list these on my income sheet? I don't have any car loans or credit cards, but I still can't make the mortgage payments due to a few hardships in the past few years.

Thank you.

[Moe Bedard]

bayside,

The paperwork tht you will be receiving will detail exactly what Litton needs......usually w2's, pay stubs, bank statements, tax returns, the hardship letter (there are examples in the Homeowner Tool Box to the left of the forum), and the income/expense sheet..........each investor's criteria is a little different.............when you get the paperwork, if you need help on the income/expense sheet, it would be best to go over that with someone from Litton as they would best know what the investor on your loan requires.................

Are they willing to workout a modification with you now, because in May you had said that they were not going to work with you............it is good that the investor is now going to help.........

Good Luck!!

[bayside]

Yes, they are willing to work with me now. I was originally told they wouldn't, but now they are!!! So, I will keep you posted. Thanks for your help.

[12345]

Bayside, when was the last time you spoke to them? They called me on the 10th just before the storm and i have not heard from them since. i have left 3 messages for Laura in loss mitigation to call me. I have her direct number. BUT they sent me some canned letter stating some preforclosure stuff. I assume this was automaticaly generated and that i need to work with loss mitigation.

[bayside]

I spoke to them yesterday. Good luck.

[12345]

Hi, did you speak to someone in loss mitigation or their general customer service #?

[Moe Bedard]

12345,


You had the number to the executive resolution team in your thread..........are you using that number?

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

[12345]

hi, i called 713-218-4633. the name of the woman is laura. its her direct dial. since she has not answered me, i will try to call the number you just listed. thank you so much and good luck to all. i light of the recent economic woes, i am hoping the investors are more willing to work with people.