Complain about a product or service

Litton Loan Services

Jacoba of Evans, GA July 2, 2009

We requested from Litton to cancel the PMI on the mortgage that represented 15% on the mortgage payment amount. Litton stipulated in their letter that the loan balance ratio with the home appraisal value should be 80% or less as a criteria to cancel the PMI. We paid a fee to obtain a home appraisal with an approved appraisal agent and submitted the appraisal documents with our request to cancel the PMI to Litton. The results of the appraisal was the home value at 241,900 and the loan balance of 185,000 resulted to 76% of ratio. After waiting 45 days of response, no letter in writing, we phoned again to enquiry about the status on the request, we were told that it was declined because their calculated ratio shows 86%, six percent highter than the criteria percentage requested. Then they added additonal requirements that were not listed in their response letter what we were to submit with our request to cancel. The complain is about what % ratio calculation they are working on and also that in the letter of correspondence they are not clear with all the criteria required to cancel the PMI.

L.C. of andover, NJ June 30, 2009

I applied for a loan modification in March of 09. On June 18, 2009 I was told that my mortgage modification was approved and that my monthly payment would go from 2800 a month to 1426 a month 2% interest and that my payment would be fixed for five years. I asked if she was sure? yes..I could tell my wife and celebrate. thank god I didn't. Two days later on June 20th I followed up with litton only to find that my modification was denied for unknown reasons... I didn't qualify for the Obama plan. They said that my loan modification was now being considered for a special program they have.... I will advise of the outcome as its still being considered...by the way I have never been late a payment to them but will behind 1 for the first time as of June 30, 2009...

Selina of rockford, IL June 28, 2009

Has anyone been modified through Litton? I have been trying to do so since my fiance got layed off in October 2008. There have been 4 unsucessful attempts to modify my 80/20 ARM that keeps going up instead of down. Because it has taken so long to modify due to loss of paper work on there end, denials from incorrect information they made up, etc. i have now missed a payment making it impossible to refi with another bank. Now my future is in the hands of Litton and it looks bleak. This is the worse company i have ever dealt with!!!!!!!

Michelle of Phoenix, AZ June 23, 2009

In 2006, I refinanced my home following a divorce. I had a two year ARM at 7.45%. In April 2008, Litton modified my loan and allowed me to keep my interest rate at 7.45%. At that time, I hoped the real estate market would improve over the next two years and thought I would be able to sell it or refinance to a lower, fixed rate before the ARM increased in 2010. As luck would have it, the market continued to decline and my house is currently valued at approx 140,000 less than what I financed it for in 2006.

In addition, I experienced a loss of some child support and had additional bills. When I called Litton to request a lower, fixed interest rate, I was abruptly informed that they could not help me since I was NOT delinquent. So, I stopped paying. I hired a modification specialist who spent three months trying to get my loan modified but was unable to accomplish anything. Thank God he never charged me for his services. He suggested that I hire an attorney to assist in helping with a modification. Since then, I have spent countless hours talking with companies who claim they have attorneys that can get me this deal and that deal. All at a fee...and with no guarantees. What happened to the FREE assistance we were supposed to get from the govt??...what a joke!!

In May 2009, I decided to follow the instructions on Litton's website to pursue a modification on my own and I submitted all the required paperwork. I called Litton about two weeks later and was informed that I would receive an offer for a mortgage modification soon. To date, I have not received anything. I called again and was told the modification was denied because I had not submitted the necessary paperwork. I asked if they had planned to notify me of this and was told that the only way to know was by calling. He then rattled off and mumbled off all the items that I was missing from my application (which I had actually submitted). I hung up on him.

I received a letter today from Litton advising that they are reviewing my loan for a possible modification. Meanwhile, my house is scheduled for auction on 9/3. I am able and willing to pay however, since I am unable to refinance or sell due to the value of the house, I am only asking for a simple reduction in the interest rate. Whatever. They can have the house...how sad that it had to come to this.

Sharon of Felton , CA June 24, 2009

Since Feb 2009 I have been trying to have my loan modify by Litton Loan, I was told that I had ARM coming up in Nov 2009 and that I could not have my Loan modify until the ARM is due. During that time I contacted a Loan Modification Company to handle my case since your not able to talk to anyone other then a customer service at Litton which they will email the department for you. I paid 2500.00 for this Loan Company to handle my case with Litton.

In March I received documents from Litton telling me that I may qualify for a modification and gave me a monthly trial payment of 2,769.70 for 3 months. I signed the documents and sent back via Fed Express overnight with my first payment of 2,769.70 also I was told that in order for me to qualify for the new payments I have to agree that they take over my payments for my house insurance and my property taxes was included in this payment.

On June 15th 2009 I received in the mail another set of document (Same documents as the first ones I received) Telling me that I may qualify for a modification but at a higher payment of 3,882.60 plus escrow fees of 579.16 total: 4,461.76. I have been on the phone with the Loan Company that I hired to handle along with Litton ( Customer Service person ) telling us that my husband and I had a increase in our salary and that they contacted LoanMediate and left a message telling them my payments had changed ( this call was never received. LoanMediate and myself were on the phone again today with Litton and all they are telling me is if I can't afford my house then I should try and sell it. I told her how can I sell my home when I owe more then my property is worth. I feel that maybe I should find a Lawyer that doesn't charge too much and take care of Litton once and for all.

Michael of Rockaway, NJ June 8, 2009

My loan was sold to Litton Loan Servicing in late 2007/early 2008. We had bought our home in August, 2007 and put down 20% of the purchase price. The first interaction I had with Litton was when they neglected to pay our quarterly taxes in the first quarter they held our mortgage. I found this out when I received a tax lien notice in the mail from my municipality. I ended up paying the taxes out of my limited savings to avoid having the lien sold at auction. Litton later made me whole when I filed my 2008 taxes. However, I am still receiving county utility bills referencing the period that we were "remiss in paying our taxes" and had a tax lien on our property. The latest issue I am having with Litton is in regards to refinancing my home mortgage. I first contacted Litton on March 4th, the date President Obama's plan was supposed to be available. I was told that I would receive a response in 30-60 days. I actually heard back in less than 48 hours. The response I got was that there are no details out for the Obama plan yet and I should contact them back in 30-60 days. They also told me to fax over a stack of information about my current financial situation, which I did. They said I should also fill out a form on their website and I would be contacted shortly about refinancing opportunities.

I wrote to them again in 30 days and received the same response. I waited another 30 days and wrote to Litton again on May 8th. The response I got this time is that the details for the Obama plan are not yet released but that they have their own program that is similar to the Obama plan and would mimic it. I was told that they would run my credit and see if I am eligible to participate in "their" plan.

It is now another 30 days later, June 8th, and I wrote to Litton again this morning to see what the status is on running my credit report. From what I understand this should take more like 30 seconds to do, not 30 days! In the meantime, since I began trying to contact Litton on this matter, interest rates have climbed from the area surrounding 4.5%-4.75% to now being around 5.5%-5.75%. Due to Litton's lack of attention to our situation, we will likely be stuck in our existing 6.5% interest rate mortgage for the next 28 years. That is, of course, if we can afford to continue paying it. The treatment I have gotten from Litton has been atrocious. My wife and I have never missed or even been late on a mortgage payment in our 6+ years as homeowners. Now we are in the situation that my wife will be out of work in a matter of 3-4 months and our hopes of refinancing through the Obama plan so we can afford to stay in our home are dwindling each day that goes by. It’s companies like Litton that participated in causing the housing crisis in the first place.

Heather of Jonesborough, TN June 20, 2009

We repeatedly asked for a loan modification and were told each time that our paper work was lost. Then we were told it would take 6 months before they would even look at our request. We were also told that they would speed up the foreclosure process on our home. They never intended to work with us

Angela of Albuquerque, NM June 20, 2009

I just filed a complaint last week regarding my modification and wanted to add on the complaint. I received another call from Litton telling me that they were adjusting the payment on the loan again. My payment started at almost 1300 mo and my payment based on their "trial period" modification would go down to 795. That would of been great if they wouldn't of called me 2 weeks after I sent the 1st months payment with the signed documents that the payment would be 795 for 6/1, 7/1, and 8/1 all in writing. Well the company called me and said that "based on verified income" that I make 3900 a month and do not qualify for the amount they told me. They expect my next payment for 7/1 to be 1200 and I asked for it in writing since I had already made a money order for the original amount and was told that it has not gone out yet.

I am not going to pay them the amount given on the phone because it sounds suspicious and sounds like they are trying to sabbotage my loan. I am lucky if I make 2300 gross as I am the only working right now. I asked them where they got their information from and they could not tell me. I spoke with my employer and nobody has contacted them to verify any income. I think that because we have been on time for 14 months, they feel that we can afford the payments. My family does without so I can pay them. I wouldn't of asked for a loan modification if I did not need it! I believe that this company is just out to forclose on every house they can. I have not seen or heard any good come out of this company. Please Investigate them for the good of the people that are stuck having to deal with this mortgage company!

Jennifer of Bothell, WA June 17, 2009

We have been trying to modify our loan since October 2008. My boyfriend was in a motorcycle accident and was unable to work. Since he owns his own business that mean no paycheck. We filled out the modification paperwork and got the ball rolling with Popular Mortgage. Well in November our loan was bought by Litton Loan Servicing when Popular Mortgage went bankrupt. Litton raised our payment to 4000 a month. That was another 700 a month! And they confirmed they had our modification paperwork. We were getting months behind in our payments and finally Litton had us work with Resolve.

Again we filled out more paperwork. sometime in the beginning of 2009 we received a letter stating our 2nd loan would be changed to a fixed loan, the payment would be cut in 1/2 and the principle would be significantly reduced. We were told at that point that they were working on our first loan. From Resolve and other mortgage companies we were told not to make a payment while in modification. Well more time went by and we can 't get anyone on the phone. Resolve says they have everything so there is nothing we need to do. They don't know what's going on with Litton. We finally talk to someone and have to fill out more of the same financial paperwork for the 3rd time now restarting the modification process AGAIN.

Still didn't go anywhere. Once and awhile we get a bill for 30K + saying we need to make a payment. We have received a certified letter stating they will accelerate our foreclosure. Just recently a debt creditor for Litton called and again she said we are not in the modification process and we need to submit paperwork if that is what we want to do. I am at 10% interest and have been trying for 9 months now to get my loan modified. At this point they can have the house and I am getting a lawyer. This is wrong. I have made too many attempts to get this handle. I'm done. Litton is the worst company I have ever dealt with.

christina of ione, CA June 4, 2009

Has anyone reported these predator's to the Department of Consumer Affairs? Can anything be done about the predatory lending practices they have? I have been trying to get a loan modification with them since December 2008, I have submitted all required paperwork to them at least 7 times in the last six months and continue to get the run around. They sent me "trial" loan modification paperwork at the end of May and only gave me four days to review before requiring that I send it back otherwise they would assume I was not interested in the "trial" modification.

There is nothing in the paperwork sent that states if I meet all their demands that they are required to modify my loan it only states that they will consider modfiying. This is the worst company I have ever dealt with. They increased my interest rate up 3% (an extra 450 per month) I don't have that much extra to send them. I am now looking at filing bankruptcy just in order to keep my house.

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