Disabled homeowner loses Mom, now fears losing home over mortgage servicing abuse

Millions of homeowners face losing their homes due to the economy and the continuing mortgage and foreclosure crises. Unfortunately though, as an array of stories on this blog  and elsewhere demonstrate, homeowners continue to be pushed out of their homes and straight into bankruptcy courts whether or not they deserve it. 

Here's yet another heart-wrenching story shared by a disabled Louisiana homeowner who's fed up with erroneous mortgage servicing that he says resulted in the death of his Mom. 
 

My name is Steven. My wife and I live in Louisiana and we are victims of predatory mortgage lending and servicing practices.

In 1997 my now deceased mother,wanted to buy and move into a little 800 square foot wood-frame house on our property that my now deceased dad and now deceased mother bought in 1972. In 1999 my mother needed some money, so she found a company to pay-off her 1997 mortgage and it was for $21,800.00 and my wife was co-signer with my mother.

The new mortgage company was PCFS Mortgage Resources out of Cincinnati Ohio and the loan closed on August 4th 1999.The mortgage was for $34,850.00 financed for 15 years at a Fixed Rate at a 13.0180% Annual Rate and the Finance Charge was for $41,425.20 and the total of the payback $73,779.19 .We are paying 11.6250% monthly interest.

Then in November of 2004 my mother, received a letter from a company out of Houston TX called Litton Loan Servicing LLC,telling her that they would be Servicing her mortgage effective December 1st 2004. All went well for about 6 months and then she received a letter telling her her loan was in default and she to pay them a large sum of money within 45 days or they would be forced to foreclose on her. My sister gave my mother the money and she payed them.Within 2004 and 2006 Litton Loan did this to my mother 4 times and she payed them their demand 3 out of the 4 times. Back then we all were ignorant of this scam.

In March of 2006 my mother received a 4th demand letter wanting $1,341.22 and she called them to tell them she was not in default. After being on the phone with them for over 1 1/2 hours she had a spell and died of a heart attack, shortly after getting off the phone with Litton employees. My mother was 61 years old and a mother who would help anyone.

After my mother's funeral March 20th 2006, my wife as a co-signer on the loan called Litton and their claim of over $1,300.00 had went to $1,700.19 within 3 days within the dated statements. My wife was driven into a chapter 13 to save our home for 48 months. My wife filed the chapter 13 against Litton Loan just 3 weeks after her phone conversation with them and the claim Litton Loan made against my wife went to over $2,300.00.

About 3 months ago we had my wife's BK Attorney to request a pay off and payment history since they ignored our`s. We discovered that Litton Loan had force placed Insurance on my wife even though Litton Loan had the proof of her own insurance and Litton had been secretly building late charges among other hidden fees against my wife during her chapter 13. We discovered after reviewing the Litton Loan payment history that every payment made, on my wife and mother's mortgage, was made on time before the due date or within the 15 day grace period and posted the payments after the grace period 60 times.

The claim that Litton Loan made against my wife in her chapter 13 bankruptcy for over $2,300.00 was a fraudulent claim and in my opinion is a federal criminal offense.

My wife's BK Attorney sent Litton Loan a letter showing their errors of posting payments late when received on-time or within the 15 day grace period and Litton Loan`s Response was the loan originated as a non-escrow account loan and it was my wife and mother's responsibility to pay the property tax which my wife is exempt from.

Litton Loan has a copy of my mother's death certificate and just wont accept that my poor mother is is dead.

Also my wife's BK Attorney pointed out that my wife had her own property insurance and they were faxed copies of the policies without a laspe in coverage since the coverage was bought and Litton's interest in the property was insured for above the amount owed on the
property.

Litton claims that they could not accept the insurance because only me who bought the policy was the only one on the policy but Litton was the beneficiary,which my Attorney said was a bogus excuse.Nothing in the original contract says the insurance has to be in a certain someone`s name other than their interest must be protected as the policies show Litton Loan`s interest in the property is covered,as they are the beneficiaries. Also our property is Tax Exempt and Litton has proof of this.

Litton refunded my wife a little over $3,600.00 as a so-called escrow overage and Litton never said in their letter that they were in the wrong. My wife payed her last Bankruptcy payment and is awaiting her discharge papers but has once again had to start paying her
mortgage directly to Litton Loan again.She filed her chapter 13 bankruptcy against Litton Loan before the new bankruptcy law came to be and can file again after her discharge.She only owes less than $15,000.00 on the property and unless it defaults the Servicer makes no profit.

Litton Loan has withheld all transaction history from her monthly statements online.Litton loan has not sent out 1098 tax forms at times (Why is this?)

.We are furious that my wife's BK Attorney did not do something for Litton Loan making a fraudulent claim against her in the bankruptcy when the payment history shows my mother nor wife were ever in a default.

We are certain that Litton will still try and say my wife is in default and try and foreclose if she does not pay them upon her BK Discharge. Much of what they do is not in the mortgage contract. Also Litton Loan says that Wells Fargo is the note holder on my wife`s loan,and it is clear the mortgage and note have been separated and the originals do not exist anymore and by law only the note holder has a standing in foreclosure when the documents can be shown unless a crooked Judge decides to foreclose without them showing proof.

Litton says to contact the originator of the loan on things concerning origination documents etc and that they are only the servicer and Wells Fargo the note holder.

Litton Loan purchased PCFS in 2004 and will not give us copies of the origination signed documents and now the powerful GS owns Litton.In 2006 Litton Faxed my wife copies of the mortgage and note so faded she nor i could hardly read them and there are signs of forged notary signatures on these documents along with the forged squiggle marks of the PCFS Mortgage Title Agent and these document mortgage & note claim`s to be true copies of the originals.

The original title agent for PCFS is a mystery because his printed name is no-where on these origination documents as filed at our local court house. Also I checked our credit report online and Litton Loan reported my wife filed a chapter 13 bankruptcy on (Feb 29,2008)when it was filed (April 12, 2006)this is another fraudulent report from Litton Loan,which I had corrected.

Also Litton Loan's reported on my wife's credit that the monthly mortgage payment more than it is and the contract says it is a FIXED RATE. The servicer claims to be servicing the mortgage according to the original terms.(HARDLY) I don't find in the original terms a servicer can rob you.

My wife and I have educated ourselves for the last 2 years and when my wife co-signed with my mother on the mortgage she went through the paper work closing documents and the right to change her mind on accepting the loan is not there so therefore she nor my mother never got a chance nor did they know this is the law. BAD BANKERS are what these criminals are.

Also in 2006 my wife sent a complaint to HUD before filing Litton a chapter 13 about a statement date 03/24/2006 demanding  $1,341.22 and another dated 03/27/2006 demanding $1,736.02 which Litton loan denied to HUD.My wife never contacted HUD back because of her filing them chapter 13.We have several statements within short periods of time from Litton Loan that has demands that fluctuate from one price to the other yet they deny we have such.Its a crying shame that these people can get the elderly so mad they die and still have no compassion except how much more money they can steal or take your home and sell it on the court house steps for a few thousand dollars.

Here are things on a few dated statements.Look at the dates and amounts very good.

Statement or letter date.

7/27/05 late payment amount $ 2,41.57
9/14/05 late payment amount $ 1,572.10
3/24/06 late payment amount $ 1,341.22
3/27/06 late payment amount $ 1,736.02

Filed BK 4/12/06 their claim amount $2,300.00

Received shortly after filing BK

4/21/06 $ 1,700.19
5/15/06 $ 1,720.68

Just compare the dates and amounts, this is just some of the fraud we can show along with the fraudulent BK Claim they made against my wife.

These sub-prime high risk loans were created to default and that's where the predatory mortgage servicers make their most money.Our 3.68 acres of property in 1999 would have never appraised at $34,850.00 but about $5,000.00 and my mothers fixed income then in 1999 along with my wife's income at that time was not what the closing papers said. My wife nor my mother knew what they were doing and no property appraiser ever came on this property in 1999. To many closing documents are missing and we simply have no idea of where to start except by sending a RESPA to PCFS in Cincinnati OH by certified mail to request every signed origination document on my deceased mother and wife's mortgage. I highly doubt they can produce such and Litton Loan rudely in a letter says they are not obligated to send us such but to contact the originator of the mortgage for these documents.What a fraudulent scam and untold crime.

In Litton Loans recent letter as an answer to our RESPA request so-called respectfully referred my wife to section 21 of her mortgage where it explains the default etc.This is nothing more than mental Terrorism by Litton Loan and we know their intentions by referring my wife to that section 21 in her mortgage.

Also Litton Loan completely ignored my wife`s RESPA dated 10/23/2009 until my wife`s Attorney called them and it came almost 60 days later pre-dated withing two weeks of the RESPA request my wife sent by certified letter with a signature request by return receipt.It was stamped FRANCIS BLACKSHEAR.Litton Loan has a reply problem until you get an Attorney at your cost to contact them.

Litton Loan said in a letter to my BK Attorney that they would correct my wife`s account as being current and refund her over another $3,333,00 and this was over 3 months ago and Litton Loan is still silent.It cost me and my wife an extra $1,600.00 for 8 hours of work
my wife`s BK Attorney claimed he did when in fact I was the one that highlighted the 60 payment history errors and he wrote the letter saying they were in serious error and to correct it or a Judge would.It doesn't take 8 hours to write a letter at $200.00 an hour.I am starting to wonder if Litton Loan has got to my wife`s BK Attorney money wide,because most would bring the fraud in front of a Federal Judge.

We have been terrorized in the worst of ways by this company and I have lived here since 1972 and my wife since 1988 and they will have to kill me and my wife to make us leave.

This place is my life -period.

I draw a disability check every month and my wife works so hard to keep us afloat and it's a shame the disabled and elderly very low incomes are the real victims without anyone in our government to fight for us. Our government can send Trillions of dollars to 3rd world countries but can`t help their low income,elderly,disabled.These predators have received millions in bail-out money that we the victims will be taxed to death to pay back and yet these billion dollar criminals are not held accountable because of the campaign money they slide into the pockets of presidents and crooked politicians.

As far as my mother goes she is in a place where the Litton empire will never rob her again.God rest her soul and yes I believe they murdered my mother. If you get someone angry and they die when you were in the wrong, that is murder in my opinion.

Well that's some of our story and we have a paper trail and everything to back up our complaints.

Thank you for listening. Someone remember us victims.

Steve M - Louisiana