Port Richey, Florida - Barbara Smith says it's very scary to think of losing your home when all you want to do is make your payments.
But that became a reality for Smith, after Litton Mortgage Servicing took over her mortgage and her payments went from $963 a month to $1,412. She says the company added insurance to the mortgage, although she already had her own.
"I've been trying to get that rectified and trying to get it settled with the company to no avail," she says.
Nadine Knowles was in the same boat with her home. She had paperwork showing she paid the original loan amount, but the company tried to charge her extra for taxes and insurance she'd already taken care of.
She refused to pay, and last week her home was sold at auction.
"I'm a homeowner that got screwed and that's OK in America, and that's OK with our courts," Knowles says.
Barbara Smith says her income doesn't allow her to make the extra payments, but she was afraid of losing her Port Richey home. So she says she is doing everything she can to send the money to Litton Mortgage Servicing, even though she says they're not entitled to it.
"I took money out of my 401K to make the higher payments, because if I don't make the higher payments, they won't accept any payment. They will return my payment to me."
Thousands of homeowners are facing the same problem and there aren't many places to turn.
W. Craig Kennedy, who co-wrote the Mortgage Servicing Kit, says never complain over the phone, because there isn't a paper trail. When you write to complain, you must put the words "qualified written request" at the top of the letter. If you do, federal law says you can't be ignored.
"They must respond in 20 days and solve it in 60 days," Kennedy says. "If you don't put that at the top of the letter, they can ignore it."
But there are still thousands like Barbara Smith who are overpaying, and thousands more like Nadine Knowles are losing their homes. It is happening every day in Florida and throughout the country.
Litton Mortgage Servicing never returned our calls to comment on the story. Litton is the target of a class action suit for similar allegations.