Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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He tells the media, and those in government power, that he wants to keep homeowners in their homes, yet behind the scenes, he rapes his clients (hostages) daily...

Blasting Litton Servicing Corp

It's in the news again - the rate of homeowners facing foreclosure continues to skyrocket.  It's been referred to as a tsunami, avalanche, and plenty of other adjectives that signify catastrophe - the latest staggering statistic comes from a report on ABC News that said the number of foreclosures filed in May 2007 was 90% higher than the number of filings in May 2006.  Incredible. 

What's even more incredible is that many lenders are living in yesteryear, more like 2004 or 2005.  Houses are "going back to the bank" at an alarming rate and in many instances, if the Lender would be at least a little more flexible, the homeowner could get back on track and resume payments.

Litton Serving has to be the worst to deal with (though there are several others vying to be the worst)  The COO (Mr. Larry Litton Jr.) of Litton stated in an article I read a few weeks ago that Litton was trying to work with their borrowers and help them keep their homes.  Well, I guess upper management forgot to send a memo to the Collections & Loss Mitigation because their attitude is arrogant and their solution is foreclosure.  Their answer to a repayment plan is to pay the total arrearage and resume making payments.  Somehow the very definition of repayment plan has been lost.   I suspect that it is less work for the Collections people to say NO to a repayment proposal than to actually consider repayment as a viable option.  Without doubt they have stacks of files on their desks.

Right now I am trying to work a short sale with Litton.   I can't get through by phone to Loss Mit, a customer service person read "file notes" and advised me the 'offer is too low'.  That's garbage.  The offer is just $7,000 under the BPO - the customer service person suggested making another offer.   This customer service guy told me there was no one that I could talk to about the rejected offer.  Huh?!  It goes to auction next week.

The homeowner has already given up and resolved herself to a foreclosure and I have decided that Litton can have this house back.  Nobody is going to bid anything close to the pay-off (which is about $20k higher than BPO) so this house will be yet another REO. 

For the record, I'm sure there are some nice, hard-working people at Litton.   I just haven't "met" them.

With so many homeowners in trouble, it just doesn't make sense to waste resources & my work efforts on Litton loans.   I just feel bad for those homeowners that wound up with Litton as their servicer through no fault of their own.

source
http://activerain.com/blogs/toobizee

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And so it begins...


From the RADIAN investor board at Yahoo.

Possibly more good news . . .  (Not rated)      58 minutes ago    
If this goes through it looks like more good news for Radian. At least it would improve the write-off amount for C-Bass.
----------------------------------------------------- ---

Fannie, Goldman Seen Bidding for C-Bass Unit
American Banker (10/02/07) P. 12; Berry, Kate
Fannie Mae and Goldman Sachs Group Inc. have emerged as the leading candidates to acquire C-Bass LLC's Litton Loan Servicing LP. Distinguished by its success in working out problem loans, Litton currently services an estimated $58 billion of mortgages. Fannie Mae would regard Litton as a way to safeguard investments in subprime mortgage securities if its bid is accepted later this month, even though the government-sponsored enterprise would face serious questions about whether it was overstepping the boundaries of the secondary market. If Goldman emerges as the winning bidder, Litton would give the firm greater scale and capacity

source

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_R/threadview?m=tm&bn=22167&tid=1648&mid=1648&tof=2&frt=2

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You are so right Ann!

Litton's sole mission is to steal homes, they tried to steal my home and stole the home that belonged to my deceased aunt and her son.

As far as them working out any payment arrangement for me - Litton did nothing!  I was told by Litton that  I would have to continue to pay my monthly mortgage of ($917.20) plus an additional ($200) monthly payment for the arrearages.

After wards, Litton tried to foreclose on my house.  I filed bankruptcy to stop them and the U. S. Trustees Office set up a monthly payments to pay off Litton and other creditors.

As far as my deceased relatives home, it was stolen for half of the market value by Litton and its partners in crime the investors who I believe to be no more than Field Inspectors.   
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Aurora
Wendy's story really hit home with me. Litton has foreclosed on our home and they can have it back. I'm tired of dealing with them. When we CAN deal with them... At least 3 times a week we have a message on our answering machine saying that they have been trying to reach us. So, I call the number back right away (within minutes) and amazingly "Kim Johnson" is either on her phone or away from her desk. Yea, right...

Lynn, I'm glad that you decided to save your home by filing bankruptcy if that works for you. But I work for our local Chapter 13 Trustee and I know how these mortgage companies operate. Examine every claim they file carefully. Make sure it's legit. If there is any question, have your attorney file an objection. It will go to an adversary proceeding where they will have to prove their claim. I hope you have a fixed rate mortgage. If you can, see if you can refinance. You have to get the Trustee's approval but it can be done. The sooner you get away from Litton, the better...


My experience:

3 years ago my husband had open heart surgery and was off work for 6 weeks. I had a minimal paying job and he received disability pay. Needless to say, our mortgage servicer foreclosed the first month we were late. No offer to work with us up front. They had to do it cause we owed several months of late fees (even though we made sure our payment was there by the first of the month)..

We hired an attorney to stop the foreclosure. Several hundred dollars later and nearly a year after the foreclosure, my servicer offered a loan modifcation. They would apply all the past payments to the end of our loan. (totaling nearly 16,000 dollars) Our illustrious attorney advised us to take the deal so we could save our home. The appraisal (set up by the servicing company) came back. Amazingly it fell into the values of the property in the area. So we agreed. Our interest rate stayed the same but our payment went up $400 a month.

We decided to get smart and sent all our payments by cashiers check and certified mail to make sure that they were received on time and no more late charges could be assessed. Well, our 1st payment was "never received" even though we had a signature that proved it was. Got a copy of the check from the bank and someone had forged our signature on the back (got my first name wrong) and cashed it. Had to be an inside job... I brought that to the attention of our servicer and amazingly 2 months later they "discovered" that our payment had been credited to the wrong account. Of course, from then on, all our payment were behind. They foreclosed again.

This time we're giving up. They offered us another loan modification. (how generous...) this time it's going to be another years' worth of payments. The house is not worth that much and no matter what we do they will find another way to foreclose again. This is how they make their money. Fool me once, shame on you. Fool me twice shame on me... I hate to lose my home but I will not be their fool again. We will survive..



My Lender?? Litton Loan Servicing / US Bank NA

BEWARE!!!!



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Aurora:

Your story is just horrible and sickening.  To think that a mortgage company and bank would take advantage of people who are ill in hospitals.  Even worse, take advantage of decedents homes. 

As far as your story with your lawyers, which is also terrible.  My lawyers did nothing to help me modify my loan and did not object to Litton's corrupt "Proof of Claim" filing with the Bankruptcy Court.  They never even asked for or looked at my loan documents.  The lawyers just rubber stamped what Litton said and as soon as they got my Bankruptcy plan confirmed ran out on me.

I had to file and fight my own adversary hearing battles.  Got sick and tire of Litton attorney's lying during the Pre trial hearing and the judge did absolutely nothing to get to the real truth and facts of the case.

So I hired an attorney to handled he adversary hearing and he entered his appearance, then he stole my money and never did anything with my case.  When I initially met with him, he told me that he knew the Litton lawyer's.  It is my belief he sold me down the drain to Litton.

However, that was before the whole "Sub Prime Lending dilemma that now is going on.  Believe me I will be looking over this case again!      

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