Litton Loan Modification

[lil.jinxie]

Hi,
I'm totally new here. My Avelo Loan went to Litton (its all Goldman Sachs) but the awfulness began long ago---when I went into a partnership with a man on a big house in 2003 - we were on the deed and note together. He had poor credit and our payments were high. A year or so later we re-fi'd but with my good credit. We took him off the deed and the note was only in my name, now (yes, I'm the idiot) so a year after that, we split up. Guess who has the mortgage liability?

I was in grad school, 2 kids almost in college (they ARE in now, and I have 2 other properties. One of them, I re-fi'd until it has no equity, trying to pay for this big house. Also, had the big house on the market for 3 years, with housing prices coming down, down. Since this mortgage is so big, I pay 3% deferred interest, so my principal goes up, up. House on the market now for $500k, I owe $640k and still not an offer. My kids and I moved out, I'm trying to rent the big house. I still have a little cottage I bought 25 years ago, almost paid off. I guess that will get taken. I have run out of ideas of how to finance this big monstrosity.

I should probably never have been given a loan in the 1st place - thru Quicken - I later noticed they had placed my income at $120k per year (a no-docs loan) and I never said that!?!? I made around $60k then. I make more now, but not nearly enough.

If I walk away, I will lose my little cottage. If I put the cottage into a trust (should have done that years ago!!) Litton will still find it? Probably. I hate to lose every single thing I ever worked for. I'm trying to help my girls with their college expenses, too! Plus I have school loans. It's going on 4 years of financial torture. Any ideas? I hear Litton is bad, bad bad.
Sweet.
Any good luck out there?

[Dan Bailey]

liljinxie,
Welcome to the forum and thank you for joining. *** or Moe will be by to answer your question as soon as they can.

May help them to know what state you're in? That helps tell if there is re-course or no re-course ...

[lil.jinxie]

I wrote earlier about Avelo to Litton, an escalating principal (negative amortizing mortgage) and owning other property --- i live in Massachusetts, if that helps at all.

[Moe Bedard]

Hi lil.jinxie,


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

You would need to confirm this with an attorney familiar with the foreclosure laws in Massachusetts...........but it would appear that deficiency judgements are not allowed in Massachusetts..........therefore the lender would not be able to come after you for the difference owed after a foreclosure sale, or any of your property for the difference for that matter...............but please check with the attorney just to be on the safe side................as for your credit...........a foreclosure would give you a harder hit than trying a short sale would............but that would be a decision that only you can make.........

Massachusetts Foreclosure Law