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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But Larry Litton Jr., head of Litton Loan Servicing, is equally frustrated. He restructured 2,000 loans last month to help subprime borrowers. This month, he'll do double that number, including changing the loan terms for 1,500 homeowners who have yet to fall behind but who wouldn't be able to afford their looming interest-rate increases.

"We are modifying more loans than we ever have, and despite that, the foreclosure volume continues to increase,

he said.

Normally, his company, which collects mortgage payments and handles late payments, helps about 60% of homeowners avoid foreclosure after they fall behind on their subprime mortgages. But with tougher lending standards, falling home prices in many areas and a lot of poorly underwritten loans, he said he can modify only about 45% of the bad loans he has on his books.

The housing crisis, Litton says, "is bigger than what people had originally thought. You're probably looking at a peak in these defaults in the third or fourth quarter of 2008."

Criticism rains down on mortgage industry -

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Joe B
OK folks, a little survey then.

     The news story below says that Litton re-works about 60% of his loans to "help" people. That means on average that 6 in 10 Litton customers have been beneficiaries of Larry's largesse.

     So, that also means that on average that 6 in 10 Litton "customers" on this site have also had their loan re-worked. So, Litton customers speak up:

1. Have you had your loan re-worked?
     a. Did they contact you or did you contact them?  
     b. If so, was it favorable?
2. Were you one of the 1500 people that have yet to fall behind (ha ha) that he has contacted to help before a default?

     You know, if these people who reported this crap would ask for names and addresses of the people who have been "helped," so they could follow-up to verify this crap, I suspect there would be more to report. Nevertheless, statistically, I would say that we have more than 10 Litton folks on the board, and that means that 6 of you have been helped. Well, let us know!!

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he said he can modify only about 45% of the bad loans he has on his books.
These reporters are nothing more than PR machines.
Let me interview a few people from Litton's 45% of the badly written
loans he can't help.
I'd like to interview a few that he did modify.  How many of those
did he carry over fee assessments whether they deserved the hit
on principal or not.  How about force placed insurance?  Put that
right on the principal balance.  Let's see a few of those contracts that have been modified.  Speak no evil clause?  Forgive any mistakes Litton has made?  Agree not to file suit? 
It is not about just the interest rate.  Mortgage Servicing companies
make their money on fees. 
Let's see a spread sheet, Larry.  Be sure to include the phone # and
address.  We want to verify that you have actually done something
to assist a borrower except blame them for your phoney fees they did not deserve and your deceptive practices.  (means the same thing as fraud.)
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Larry is a proven liar so why the news media still pays attention to their PR is a mystery.

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Based of your questions Joe, Dee,

Loan Modification, and Forbearance agreement:

Is there a way around the Forbearance?

I was thinking this might work.

You've got your paperwork finished
You give it to your attorney
He files it with the courts
and a Court date is set

While you are waiting for the court date to arrive, Could you sign a Forbearance agreement, to proceed with the Loan Mod the Servicer is willing to give you?

I know a Forbearance Agreement invalidates the borrowers ability to to seek legal action.

However, if you have filed with the Courts, before the Forb. Agree. is signed, could you still hold Servicers accountable for their actions in the past, since you have proof of filing with the courts for retribution BEFORE you signed the Forb. Agree.?

My thinking is............. This would show your intent on legally pursuing the matter for their mischievous activities, and illicit collections.

And I 'm thinking the filing with the courts would overthrow, the Forbearance Agreement, rendering their past behaviors still pursuable.

Does anyone know if this loop hole could be used?
If so, then we would need to find a way to educate those who are in need of a loan mod, BEFORE they sign Forb. Agree. papers.

Ugh, I really don't want to hear that the Forb. Agree. would nullify the Court filing, and the loop hole, I'm trying to create here.

What thoughts do you all have on this?
Is it legally doable?

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Don't worry talk is cheap! At one time I had a lawsuit filed against Litton. Now it's over I can be free to testify against Litton. Some entities find it creditable since the documents were filed in a court of law.
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Joe B

     I am NOT a lawyer! However, I would think that as soon as you showed up in court that opposing counsel would simply show the judge your signed forbearance agreement, and say the matter is resolved. If your attorney objected, opposing counsel would simply show the "you can't sue me clause" along with your signature, and ask you to go away.

     It's a loop hole as you suggest. But is it worth gambling with your house? I am not so sure frankly.

     Now, as another option, could you simply hold them off long enough for the court date to arrive. You could stall and delay and NEVER sign before the court date. Now this might work, because when you got into court, you could simply say that their terms were unacceptable, and that's why you didn't sign... on with my case!

     Not as risky, but maybe not possible either. However, I would consider the option of signing and hoping a tad risky! I hope I helped!!

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I can tell you and SHOW you Larry Litton's signature on MY Loan Modification signed by Larry himself, within 30 days of signing the Modification, he had his company pay for the next foreclosure six months ahead of time!!!!, He not only had that done, but the first three months of monthly payments I paid Litton Loan, he applied to "Late Charges" and "Interest" on the previous loan!!  Some guy that Larry is!!! AMERICA'S MOST WANTED TERRORIST!  LARRY LITTON SR. AND JR.  I hope he is not sleeping well!
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Larry Larry Larry.  Liar liar pants on fire!!!!!!!

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I whole heatedly agree with you Gary.

Certainly these lending criminals and the politicians who aid and abet them should be on the top ten terrorist list I can't imagine anything more dangerous than looting the economy and stripping citizens of their property rights, denying them due process, and now going so far as to get us classified as terrorists. It just astonishes me that these crooks ability to buy immunity with our stolen money, set up government policies and pick leaders that serve their criminal enterprises.

You can switch Roland Arnall and Larry Litton on my song if you wish.

·    When Roland Arnall is swimming in the creek, And an eel bites his cheek, that's      Amore!

·    When an eel bites Larry Litton's thigh, As he's just swimming by, that's               Amore!

·    When an eel, with all its charm, takes a hunk out of  Angelo Mozilo's arm, that's     Amore!

·    When Ace Greenberg screams, and he begs, but it still bites off his leg, that's          Amore!

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O - Need to read

Lenders Say They Plan to Streamline Loan Modification Process

I have been trying to get some more information on the new loan modification agreement that California Governor Arnold Schwarzenegger has worked out with Countrywide, GMAC, Litton and HomeEq .

This San Francisco Gate article has been all I can dig up that had some facts about the details.

While I am excited about this new agreement, I am also cautiously optimistic. Talk is cheap and there has been a lot of lip service lately. I have seen too much doom, to all of a sudden start whistling dixie. So, I'll wait to break out the party supplies until later.

As they say, "The proof is in the pudding!"

With that said, I wanted to make sure that I posted the details for my readers as they are revealed. Here are some key points of the new deal.
  • If you have a mortgage through Countrywide, GMAC, Litton or HomeEq, you might qualify to have your introductory interest rate temporarily frozen.
  • To get help, borrowers must occupy their homes, have made their payments on time and prove they cannot afford the loan's new rate.
  • Agreed to maintain the initial, lower interest rate for some subprime borrowers whose rates are scheduled to jump significantly higher.
  • To qualify, borrowers must occupy their homes, have made their payments on time and prove they cannot afford payments with the higher interest rate.
  • The word that was chosen is it's for a 'sustainable' period of time. (no definite fixed term as been proposed)
  •  Larry Litton Jr., chief executive of Houston's Litton Loan Servicing, said his company plans to expand the initial interest-rate period for up to five years.
  • The lenders also said they would streamline the process for determining who gets the loan modifications. The companies also agreed to provide regular reports to the Department of Corporations on their efforts to reach out to consumers and on how many loan modifications actually occur.
Paul Leonard, California director for the Center for Responsible Lending, an advocacy group had this to say about the governors landmark deal. "Overall I am extremely pleased that the issue of foreclosures is squarely on the governor's radar screen and that he seems to have extracted some important commitments from some very significant loan servicers here in California."

He then made this comment that I thought hit the nail on the head and will be the gage to see if this is just lip service or the real deal.

"That said, the devil is in the details. The monitoring and reporting on the process is critically important."

Amen Mr. Leonard!

Larry Litton had this to say, "Freezing the payment rate makes economic sense for the investors who own the mortgages as well as for the homeowners. Property values are falling dramatically, primarily because there are so many foreclosures already on the market in some areas."
Litton also said this, "Clearly, it is not good for our investors to have the real estate back. It feels like a no-brainer for a loan servicer to keep the payment where it is, keep another piece of real estate off the market and keep the borrower in the house."

I would like to think that it's a no-brainer Larry, but that hasn't been the case so far.

"With this type of cooperation from loan servicers, we can save tens of thousands of people from being added to the foreclosure lists," the governor said in a statement. "This common-sense approach does not involve a government subsidy or bailout."

I would like to hear back from homeowners that have any of the above named lenders or loan servicers. Please give me any feedback or stories, so I can report what really is going on.
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Loan Modification & Loan Workout News: Lenders Say They Plan to Streamline Loan Modification Process


    • 11/24/2007 6:04 PM Steve wrote:
      I might be your first test case. I am currently going through a loan modification process with Countrywide. I have made it through all of the steps and am currently waiting for final approval. I fulfill all the requirements you listed. I expect to hear back from them in the next few days. I will keep everyone posted on what happens next. Thanks.
      Reply to this
      1. 11/25/2007 3:29 AM sswiz wrote:
        I am also on the final stages with countrywide but not in CA im in PA. It is submitted to the investors now and i should here back by the first week in Dec. Steve how long have you been going through the loan modification process with countrywide?
        Reply to this
    • 11/26/2007 4:09 AM HurtByAmeriquest wrote:
      I posted your question on this forum. I think this is a good question to ask, Who have they helped. So far we have not found anyone. That I know of.

      I don't think that Freezing the rate would help, They need to fixed and lower the interest rate for the term of the loan. I wouldn't bet on them if they didn't. Don't buy mortgage stock.

      QUOTE >>> Larry Litton Jr., chief executive of Houston's Litton Loan Servicing, said his company plans to expand the initial interest-rate period for up to five years.<<
      As you said Moe, The Proof is in the Pudding.
      Reply to this

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    Loan Modification & Loan Workout News: Many Lenders Pay Lip Service When it Comes to Loan Modifications, Even When They Cause...

    By: Nathan Fransen, Esq.

    I am an attorney practicing in California, representing consumers against lenders.  I want to share a story that is unfortunately all too common.
    A client came to me with what I expected would be a problem I could resolve relatively quick.  Approximately two years ago they had refinanced their primary residence.  They had applied for a 5 year fixed interest only loan.  The notary came to their house to conduct the signing.  During the signing the borrowers discovered that the note provided for a 2 year fixed, followed by an adjustable.  Knowing that this was not in keeping with their financial plans, they immediately brought to the notaries attention and demanded the loan officer be contacted to resolve the issue. 
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