Complaint Review: Litton Loan Servicing - Houston Texas

If you have dealt with Litton Loan, I couldn't tell you anything that you haven't experienced. They do not return calls, they offer no information and if you need a payoff balance, well, that's gonna take 4 to 6 weeks. That's just a few consistant examples of their agenda to rob as much money out of people as possible. They are, quite frankly, high dollar predatory debt collectors.

We have contacted our state Banking Commission twice since dealing with Litton Loan.The first time, Litton tried to foreclose on us after Deusche Bank bought our loan from Ameriquest in late 2002 for the sole purpose of having Litton Loan "service it" right into forceclosure. Ordered by the state of Georgia on our behalf, Litton was forced to honor a payment plan Ameriquest signed and agreed to prior to the loan transfer.

In late 2005, we filed Chapter 13 to save our home and try to repair our financial situation. Since that time, my husband has almost doubled his income in the professional industry he's worked in for 15 years. He recently had the Chapter 13 dismissed due to our ability to pay our bills on time and work out payment plans with the three creditors in the 13. We were elated we could finally pay our debts. After 6 months at his new position, we sent our new financial status to the three creditors on the 13, one being Litton Loan.

We secured pre -approved financing at a decent fixed rate based on my husband's new income, our low debt to income ratio (we don't have huge credit card debt) and began the process of trying to get a payoff balance. Covering all our bases, we also requested payback plans Litton/Deusche Bank would offer to us.

Litton Loan has made it practically impossible for us to save our home. We were put into foreclosure the first of July. After daily calls and 5 weeks of waiting for a payoff balance, the final number was given to us by the attorney's handling our foreclosure. $39,000 of interest had been added on top of the principle on the loan. No one has clarified why. Litton assigned us a "foreclosure specialist" who would rarely return our calls, lost our initial financial paperwork, and gave us a payment plan option we later found out wasn't even available to us because my husband was now making "too much money". We are combing through spread sheets hoping we find discrepancies as to how money has been applied. The banking commission ordered the information and if we find problems, we have to file another complaint. We have less than three weeks to save our home.

So far after an initial overview, we've found several mathmatical errors and two payments that were cashed but never applied anywhere to the loan. As we continue to go through the last 5 years of Litton Loan's records, we also realize we probably signed a contract with Ameriquest that was horrible terms. We fear we have no leg to stand on as we go through interest charges, where payments were applied and the amount they can charge us on interest given the terms of the orginal loan. We're trying to sort out if what they have done to our loan was legal, a mistake or legitimate.

As Litton drags their feet, a per diem interest rate of over $100 a dayis being be applied to this loan! All the pressure is on us now because we were forced to wait over a month for answers.

If you have ever tried to work with Litton to keep your home out of foreclosure, I urge you to google a speech made by the son of Litton Loan's founder and CEO. Addressing the Financial Institutions and Consumer Credit Subcommittee of the House Committee on Financial Services,May 8, 2007, Larry B. Litton, Jr. gave a lovely speech regarding the role of secondary lenders in today's economy. To read his words, you would think Litton is a debt counseling agency. Do NOT eat your breakfast before reading the speech. It's laughable and reflects the exact opposite of anything Litton Loan practices.

To bring these people down is like taking over the mob. Believe me, in some political circles, these people are doing big money folks huge favors by existing. We have now opted to attempt to bypass Litton and find out how to go direct with Duesche Bank to negotiate the amount our new lender can max out on in paying off the first mortgage. Good luck to all that have to deal with these bottom feeders and given the kudos recieved by some of the Senators on the recieving end of the Litton speech, they won't be going anywhere soon.

Angied

Cumming, Georgia

U.S.A.