My friend asked me to post her scenario on the forum to see what your advise would be. Here is her story:
She purchased a condo in November 2005 in California for approximately $364K. She did 100% financing, 80/20 (?) which is now with Litton and SLS. In the fall of 2007 she worked with her lender Litton on a loan modification. The process was very difficult, she spent months calling everyday, leaving messages not getting return phone calls. When she did finally get a live person she would often get the runaround! After what seemed like an eternity, she was granted a loan modification on her first and her interest rate was frozen at...%. This rate is effective until November 2009 at which point it will adjust. While the modification was very helpful, it did not reduce her monthly payment.
She is currently three months past due on her first with Litton and four months past due on her second with SLS. Litton has called and said that she has four options:
- Pay the past due amount
- Short sell
- Deed in leiu
- Do nothing and go through foreclosure
She does not want to loose her home but cannot afford her monthly payments and needs to have them reduced. What are her options? Has anyone had success with Litton and/or SLS? Does anyone have any direct contacts at either company that would be helpful?
Thank you.
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