In April, Litton settled a class-action lawsuit that claimed the mortgage servicing company failed to timely credit borrowers' mortgage payments, that then caused the servicer to charge unfair late fees -a practice that landed many unsuspecting homeowners' mortgages in default.
The lawsuit covered all homeowners whose mortgage transaction was transferred or sold to Litton between October 2002 and February 2009, and who were charged erroneous late fees within 60 days of the transfer.
But as Jessica's story reveals below, and many others like her continue to point out, even after the settlement, many consumers continue to complain that Litton still fails to post payments in a timely manner, forces them into unfair foreclosures and subjects them to a run-around when they try to modify their mortgage. See: Litton's Response.
Here's Jessica's story;
Dear Denise:
I'm in shock. I was bullied by Litton Loan into believing that I was forgetful, negligent, and basically "lazy" in the handling of my loan payments.
I needed to refinance my home to pay for emergency surgery a couple years ago. The day after signing the paperwork I received notification that my mortgage had been sold to Litton.
Last spring I had some more bad luck and suffered a severe injury requiring surgery and 9 months off work. I always made my mortgage payments monthly. Sometimes I was late, but I made sure to always include late fees in my payment.
Last December, 3 weeks before Christmas, a notice of "Delinquent with intent to Foreclose" was pinned to my front door. A very shady looking man showed up and took pictures of my house. I called Litton and was directed to their "Loss Mitigation" department. I was treated like a deadbeat, and told the only way to avoid foreclosure was to pay them double my mortgage amount that day, and sign an agreement.
I panicked and agreed, borrowing money anywhere and everywhere, even from my 401K. This "agreement" increased my monthly payment by $800.00. I was now expected to pay $1,800.00/mo on a 1600 sq. ft. house worth $120,000.00.
I tried to get help, this seemed illegal. I hired an attorney.
After a couple weeks of talking to the people at Litton he told me "You lied. They can prove you've missed 2 monthly payments". I went through all my canceled checks and bank statements, back 2 years worth, proving a payment each month to Litton. In response Litton faxed about 60 pages worth of legal jargon which, according to them, "proved" my delinquency. None of it made any sense, and I'm a well-educated, fairly savvy person.
Fast forward to now, I can't pay any of my bills. I'm a single mom, and that mortgage payment is more than half of my monthly income.
I'm letting them take the house.
Then I found your website! EVERYTHING I experienced is here and here!
Litton sent me letters claiming I didn't have proof of insurance about a year into their involvement. Crazy! I had to prove insurance when I refinanced! Nothing had changed!
When I spoke to Litton representatives I questioned whether any of my payments had been placed in suspense accounts (I'd heard of this tactic before). Some representatives flat out denied ever hearing of such a thing, others were evasive, one confirmed it. I really lost hope when that attorney accused me. I thought I must have overlooked a bill in the past somewhere and didn't realize it.
Now to read that this is common fraudulent practice! WOW! How can we get the attorney general (and our legislators) to address this? The public needs to be aware. If this can happen to me, someone who owned their home for 16 years, is responsible and has a good income, this can happen to anyone.
Jessica R.
***************************************************
The systemic problems and complaints about the uncooperative and unregulated mortgage servicing industry continue to demonstrate the need for real reform and real oversight. Many families have lost homes, or been forced to fight against illegal foreclosures and corporate wrongs caused by accounting errors, fraud, negligence, or rampant corporate greed and government acceptance.
Here are just a few links to recently published stories, that much like Jessica's point to the need for real reform and oversight in the mortgage servicing and financial industries.
Loan modification runarounds McCloskey and Cheverez story
The lawsuit covered all homeowners whose mortgage transaction was transferred or sold to Litton between October 2002 and February 2009, and who were charged erroneous late fees within 60 days of the transfer.
But as Jessica's story reveals below, and many others like her continue to point out, even after the settlement, many consumers continue to complain that Litton still fails to post payments in a timely manner, forces them into unfair foreclosures and subjects them to a run-around when they try to modify their mortgage. See: Litton's Response.
Here's Jessica's story;
Dear Denise:
I'm in shock. I was bullied by Litton Loan into believing that I was forgetful, negligent, and basically "lazy" in the handling of my loan payments.
I needed to refinance my home to pay for emergency surgery a couple years ago. The day after signing the paperwork I received notification that my mortgage had been sold to Litton.
Last spring I had some more bad luck and suffered a severe injury requiring surgery and 9 months off work. I always made my mortgage payments monthly. Sometimes I was late, but I made sure to always include late fees in my payment.
Last December, 3 weeks before Christmas, a notice of "Delinquent with intent to Foreclose" was pinned to my front door. A very shady looking man showed up and took pictures of my house. I called Litton and was directed to their "Loss Mitigation" department. I was treated like a deadbeat, and told the only way to avoid foreclosure was to pay them double my mortgage amount that day, and sign an agreement.
I panicked and agreed, borrowing money anywhere and everywhere, even from my 401K. This "agreement" increased my monthly payment by $800.00. I was now expected to pay $1,800.00/mo on a 1600 sq. ft. house worth $120,000.00.
I tried to get help, this seemed illegal. I hired an attorney.
After a couple weeks of talking to the people at Litton he told me "You lied. They can prove you've missed 2 monthly payments". I went through all my canceled checks and bank statements, back 2 years worth, proving a payment each month to Litton. In response Litton faxed about 60 pages worth of legal jargon which, according to them, "proved" my delinquency. None of it made any sense, and I'm a well-educated, fairly savvy person.
Fast forward to now, I can't pay any of my bills. I'm a single mom, and that mortgage payment is more than half of my monthly income.
I'm letting them take the house.
Then I found your website! EVERYTHING I experienced is here and here!
Litton sent me letters claiming I didn't have proof of insurance about a year into their involvement. Crazy! I had to prove insurance when I refinanced! Nothing had changed!
When I spoke to Litton representatives I questioned whether any of my payments had been placed in suspense accounts (I'd heard of this tactic before). Some representatives flat out denied ever hearing of such a thing, others were evasive, one confirmed it. I really lost hope when that attorney accused me. I thought I must have overlooked a bill in the past somewhere and didn't realize it.
Now to read that this is common fraudulent practice! WOW! How can we get the attorney general (and our legislators) to address this? The public needs to be aware. If this can happen to me, someone who owned their home for 16 years, is responsible and has a good income, this can happen to anyone.
Jessica R.
***************************************************
The systemic problems and complaints about the uncooperative and unregulated mortgage servicing industry continue to demonstrate the need for real reform and real oversight. Many families have lost homes, or been forced to fight against illegal foreclosures and corporate wrongs caused by accounting errors, fraud, negligence, or rampant corporate greed and government acceptance.
Here are just a few links to recently published stories, that much like Jessica's point to the need for real reform and oversight in the mortgage servicing and financial industries.
Homeowners continue to speak out Coleen's story
Mortgage Servicing Complaints Rise; Tammy's Story
Don't Skip Mortgage Payments Mari's story
Why we need financial reforms The Parton's StoryLoan modification runarounds McCloskey and Cheverez story
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Please help raise public awareness!
SCORES OF HOMEOWNERS ARE BEING EVICTED DESPITE HAVING NOT LAWFULLY LOST OWNERSHIP OF PROPERTY DUE TO NULL FORECLOSURES. Please distribute the information below so that it might reach Congress Members who will take action
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To: Members of Congress and all State Attorney Generals, PLEASE launch probes into self-evident false IRS form 1099-A's from foreclosures!
Non-legal foreclosures filed DELIBERATELY in courtrooms are for reasons such as: filing false Internal Revenue form 1099-A's for tax advantages; repeated property flipping (which leads to blighted
neighborhoods); and Bankruptcy Court false motions to "Lift Stay" to achieve SIMULATED AUCTIONS. As such, loan modification is not in their interests. . .Ongoing USA news reports of court judges who dismiss foreclosure cases because of no proof of owning notes is not always a coincidence, or mistake!
Deliberately false foreclosures also name defunct mortgage companies or companies which no longer hold the notes; and contain illegally affixed fees in excess of "Acceleration Clauses," which makes it even harder for people to re-pay arrears. If property owners sue for "Unfair Debt Collection Practices," attorneys make more even $$$ through protracted litigations --which Wall Street Investors often incur the tab.
For example, a mere look at Wells Fargo's false 1099-A's will expose various White Collar real estate & foreclosure fraud (carried out for years)--likely, another S&L mess! For CASE STUDY facts and proof,
see:
http://www.lawgrace.org/2008/08/08/my-august-8-2008-statement-to-the-louisiana-secretary-of-state-office-of-financial-institutions-concerning-wells-fargo-irs-and-mortgage-frauds-sham-foreclosures-and-judicial-collusion-and-national-app/
Barbara Ann Jackson
Law & Grace, Inc
Super post, Need to mark it on Digg
Pett
http://www.bushnellcomplaint.blogspot.com/
Please visit this blog. Important new information concerning a TRO granted in the State of California in reference to wrongful foreclosure by Fremont, Litton (Goldman Sachs)