I’m Not Smitten Wit Litten

Two years ago, my husband became ill and we fell behind 2 months on our mortgage payments. We were on a repayment plan through Litton Loan, which was to be completed at the end of this year.

We began receiving mail offers from other companies in June to refinance our loan because our interest rate was going up.  We contacted Litton Loan, who said we were owned by OCWEN, and to contact them.  OCWEN had no record of our mortgage. 

We called Litton again, and were told that they had our loan, and  that because we were in a repayment plan, our payment would stay the same.

In October, we were notified by phone by Litton Loan that our home was in foreclosure and that we would have to be out of our home by the date of sale, December 2nd. We have talked with Litton Loan representatives many times, each giving us a different story, from “you are not supposed to be in foreclosure” to “you are eligible for a loan modification”, each representative saying they would call us back with more information, but never doing so.

No one has been willing to talk to us, until yesterday. They want us to pay an extra $11,000 over 21 months.  They have taken our payments without comments, until October, when they returned our payment, saying we had been late since June.

We have asked about a loan modification, but the Litton rep says that we don’t have time to be considered for a modification, and that we are not eligible. We have completed the packet to be considered,and have been told that it is in the Loss Mitigation Dept. at Litton, but we are not allowed to speak to a rep of that dept.

We have contacted the FDIC, through our state representative.  The FDIC says that Litton is under the FTC, and that the FDIC, today, is sending a letter notifying the FTC of our problems with Litton.

We seem to be pushed into a corner of either 1) being forced into a repayment plan that is almost impossible for us, or 2) filing for Chapter 13 bankruptcy. 

Do you have any other idea of recourse for us?

Thanks.
Shari

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Hi Shari,

Just a guess, but it sounds like you may have equity in the property.  Send a QWR to Litton requesting clarification of all of your concerns and read the following articles. 

Read: Bankruptcy Loom, Lender Doom, Heavy Hand Loan Mod & Loan Servicer Shenanigans Againagan

Thanks for the questions and hope this helps.

Paul