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.