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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B
I just viewed my 2011 Form 1098 on the Ocwen website in preparation for filing my taxes for 2011.  Ocwen assumed the role of servicer on my loan in September 2011 from Litton.  Yes, out of the frying pan and into the fire I've gone.
The Form 1098 on the Ocwen website includes ONLY the interest paid in 2011 to Ocwen, omitting entirely 8 months of interest payments that were paid to Litton!
I've just written to Ocwen to inquire, and also checked the Litton Loan website, which now consists of a message box referring viewers to Ocwen.  I understand that Forms 1098 must be mailed by January 31 but am concerned that Litton may not uphold their responsibility to do so. 
Does anyone here have any idea of how I should proceed if the correct Form(s) 1098 are not received? 
Whose responsibility is it to provide?  Is it proper for Litton to issue one and Ocwen to issue one, each reflecting the interst paid to them?
Has anyone else who has gone from Litton to Ocwen seen their Form 1098 and does it reflect only payments to Ocwen as well?
   
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George Burns
I do not understand.

Ocwen did not take over servicing Litton accounts until around October, So how could you have paid 8 months to Ocwen.

In any case, they have until January 31 to send out the forms, you just have to wait and see if you get them/it.There are many mortgages for which a 1098 is not supplied.

If you do not get what you want and calling Ocwen does not solve the problem, simply estimate or calculate the interest amount from your statements which clearly show the breakdown each month. There is no real need for a 1098 especially since you do not send a copy in with your tax return.
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B
Thanks for your response, but it isn't really answering my question, which perhaps wasn't clear in the first place.
The problem here is that Ocwen assumed servicing from Litton in 2011, probably for many thousands of homeowners, including me.
The Ocwen issued Form 1098 for 2011 shows only the interest paid to Ocwen.
Litton is defunct, and wasn't all that reputable before they were defunct. 
The question is how do we obtain the correct and accurate Form 1098 indicating total interest paid in 2011?
Shouldn't servicers have an obligation to provide service to mortgage holders, not just to their investors?
FYI, I believe the Form 1098 does now need to be filed with our 1040s, they now come with scannable information included and we are advised to only attach the scannable 1098 to our returns...
I would not even remotely consider 'estimating' the interest paid for a tax return.
Also, calling Ocwen or any other disreputable servicer is NOT in the best interest of any mortgage holder.  Communication is best confined to in writing only!
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Stephanie
I just had the same issue.  Please post if you find out the answer to your question since I am sure we are not the only ones with this issue.
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B
I'm still working my way through this.  Meeting with my accountant Friday evening and hoping she'll have some idea how to proceed.  For now, I know the deadline for mailing of the 1098s to us is January 31.  Once the deadline has passed and we have not received the correct 1098s, I'm thinking the IRS itself may have jurisdiction over the issue.  I'll definitely keep the board posted on what happens, please do the same.  I really feel very badly for others who may not even realize that their Ocwen 1098 doesn't reflect the entire year of interest paid, only the portion paid to Ocwen and not the amount paid to Litton.  Those homewoners will be cheated out of their full mortgage interest deduction if they don't realize and file their 1040 on the amount listed on the Ocwen 1098 only.  Very frustrating. 
In thinking about it, I'm pretty sure that when Ocwen assumed servicing from Litton, it became Ocwen's responsibility to issue the Form 1098 for the entire tax year, especially since Littion no longer exists.
Maybe someone on this board knows exactly how that is supposed to work? 
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In same boat
I just found the same problem with our 1098.  Ocwen only reported the interest for the payments they received and did not include those through Litton.  I hope to stay up with this topic as well.  Because on the 1st of February if I have not received the appropriate 1098 from Litton, I intend to report them to the IRS.

Litton and Ocwen may think they can dick with their loan servicing customers but I would love to see them try it with the IRS. 

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Jackie S.
I have the same situation with Litton. Not only Litton did not transfer our taxes information with Ocwen, the company also collected in advance money for a home insurance, cut the insurance in September, and transferred the debt to Ocwen. So, when the account went to Ocwen we had a negative balance in our Escrow account and no insurance. After going back and forward with Litton and Ocwen several times through certified mail, we finally obtained an adjustment from Ocwen. Now they are unavailable to contact. We heard about previous customers unsatisfied with Litton but never had ourselves a complaint until the transfer. Certainly, not the most transparent company apparently.
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Tiffany
doing my taxes as I speak and I to saw they only have from take over of litton accounts from nov1- dec 2011, all I am doing is looking at my past 8 months of litton statements showing what interest I paid last year to them it will be the same as what they report on the 1098, I also have to my property tax statement form the county so I dont need their statement but would be nice to have. I am VERY leery about OCWEN after all I have read others horror stories. I will be saving every confirmation number  if paying by phone or internet as well as send my payments w delivery confirmation if I mail it ... be careful to all of us who are now in this nightmare together  Last thing I notices on my taxes and insurance tab they have now added 707$ PI insurance to my loan how the hell can they do this .? I have never had any type of mortage insurance prior to this take over because of the amount we put down on our mortage we did not have to have this . not gettign any answers form them.
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ka

Although this is an interesting thread and there is more than a little merit in using miscues at Litton / OCWEN to pound these servicers, I would make several observations relating to this discussion.

 

First, I would point out that an acquisition of another entity is not the same as a merger.  As far as I know (though I haven't researched the issue), Litton has not been merged into OCWEN.

 

Unless entities merge, they remain separate and distinct legal entities.

 

So unless there is some IRS interest reporting rule unknown to me, it would seem most likely that it would be an incorrect treatment for OCWEN to report interest paid to Litton, UNLESS there had been an actual merger.

 

But this would certainly not absolve Litton of its reporting responsibilities under the Tax Code.  I would think that Litton owes you the additional 1098.

 

In my view, the entire discussion raises another rather fascinating question and possibly even something that might merit some lobbying and public action.  At core, as a servicer, the servicer is merely collecting and passing through the interest to the ultimate mortgage investor.

 

My analysis above relating to the separate 1098s from two successive servicers, presupposes that it is the servicer which is responsible for reporting the interest rather than the mortgage investor.  If it was the mortgage investor which was responsible for 1098 reporting, then one would expect a single 1098 on behalf of the investor, possibly prepared by the servicer acting as agent for the mortgage investor at year end.

 

Accordingly, it seems to me that consumers probably ought to be lobbying to get the Tax Code changed to REQUIRE that the 1098s identify the mortgage investor to whom the interest is being paid!

 

Think about it for a minute.  YOU get a 1099 on the interest YOU receive as income.  IF THE 1098 FAILS TO IDENTIFY THE MORTGAGE INVESTOR RECEIVING THE INTEREST, WHAT IS THE ASSURANCE THAT THE GOVERNMENT IS ACTUALLY BEING INFORMED ABOUT THE AMOUNT OF INTEREST PAID AND RECEIVED?

 

Of course, the banks can argue that the mortgage trusts are tax exempt entities.  While this is true, they are tax exempt ONLY to the extent that the interest income is NOT taxed to the REMIC but rather the mortgage certificate holders are taxed as they receive various interest payments.

 

Still, SHOULDN'T THE INFORMATION REPORTED TO THE GOVERNMENT ACCURATELY REFLECT THE IDENTITY OF THE ACTUAL MORTGAGE INVESTOR?

 

I would argue that EVERY 1098 ought to identify not only the servicer, but also the mortgage investor receiving the borrower's payments, both interest and principal.  This would do a LOT to overcome some of the transparency problems and this could be easily done on a national basis in the interests of tax compliance!

 

*

 

Returning to the principal theme of the thread, it is also important for borrowers to understand and distinguish that there is a difference between acquisition and merger of a company and acquisition of mortgage servicing rights.

 

For example, when Option One went out of business, it sold its servicing rights to American Home Mortgage Servicing, Inc. (AHMSI).  Option One then changed its name to Sand Canyon Corporation and went into hiding.  AHMSI acquired only the servicing rights, NOT the company.  Mr. Roper has posted about this before in other threads.

 

The distinction is important because AHMSI has repeatedly falsely represented in various courts and in respect of various mortgage assignments that it was the successor to Option One.  THIS IS UNTRUE.  Sand Canyon continued to exist and was the SAME corporate entity as Option One.  There was no successor company as the term successor would be ordinarily understood in business.

 

But one can well imagine that this kind of sale of servicing rights presents much the same problem and probably EXACTLY the same problem as the OCWEN - Litton acquisition, because I would BET MONEY that OCWEN would have NEVER merged Litton into its enterprise.

 

Merging Litton exposes OCWEN to any and all liabilities of Litton.  By contrast, purchasing the company, keeping it a separate entity and then also separately transferring the servicing rights achieves the same ultimate objective while orphaning all of the liability for Litton's fraud in the now exhausted and barren Litton corporate shell!

 

So my GUESS is that it was only the servicing rights that were actually transferred directly into OCWEN.  This would seem to leave the responsibility for IRS 1098 reporting of prior borrower interest payments on Litton, not OCWEN, same as for AHMSI.

 

*

 

Finally, I would point out that while irregularities in 1098 issuance probably ought to be a subject which merits much gnashing of teeth, it actually shouldn't have any great effect on most borrowers or their actual tax liability.

 

The 1098 affords a means of computerized matching and verification of taxpayer assertions about interest payments with Lender reporting about interest actually collected.  But unless there is some change to the tax code of which I am unaware, taxpayers are probably entitled to deduct the interest actually PAID during a tax year whether they receive a 1098 or NOT.

 

If the taxpayer reports an amount for which there is no corresponding report on a 1098, this could result in an audit of the borrower.  But as long as the borrower can PROVE the amounts actually PAID and the nature of the payments, even if audited, I doubt that failure to have a valid 1098 would result in any denial of the asserted interest deduction.

 

The probability of getting audited is also exceptionally LOW, well under 1% for most taxpayers.

 

Actual audit selection is based upon a so-called discriminate function.  The IRS has determined statistically mean and median values of various reported income and expense measures based upon various other tax return factors, together with standard deviations.  That is, for a taxpayer with a certain adjusted gross income, there is an amount of expected interest expense (e.g. it would be hard to afford $30,000 interest a year on $25,000 in income, etc.).

 

Discriminate scores are assigned to taxpayers based upon observed return attributes based upon variance from expected values, with the score increasing exponentially as the value falls more than two or three standard deviations from the norm.

 

For example, suppose that the mean charitable contribution for Church donations was $457 for an itemizing married couple with an adjusted gross income of $65,000, with a standard deviation of $255.  If you and your wife had a comparable AGI of $65,000, itemized and took a deduction of $450, you would almost NEVER be audited, at least as to this item.  That is to say that your chance of being audited wouldn't just be below 1%.  It would probably be more like 0.001%.  In fact, you would probably ONLY ever be audited in respect of such an expense if you were randomly selected for a total audit as part of a statistical exploratory tax compliance program to study overall levels of fraud (rather than to recover tax underpayment based upon suspected non-compliance).

 

By contrast, if you claimed $1,000 in Church contributions, which would be over 2 standard deviations higher ($457 + 2 x $255 = $967), your chance of being audited on this item would be much higher.  It might even be 2% to 10% (I am INVENTING these illustrative figures).  If you claimed even higher amounts, maybe in the $3,000 to $5,000 range, you might be sufficiently outside of any normal distribution that your chance of being audited would increase to close to 100%.

 

(Again, I want to emphasize that the discussion above is accurate ONLY as to the use of probabilities and discriminate function scoring to the likelihood of being selected.  ALL of the values and probabilities are INVENTED for the illustration.)

 

When a taxpayer is audited over a particular item and found to be in compliance, then this is taken into accounts in future scoring.  By contrast, when a taxpayer is audited and found to have made errors or taken unsupported deductions, an audit can be expanded

 

My overall point is that while a 1098 matching failure could certainly be the source of an audit, most audits are driven by anomalous deductions which are out of range with income, other return aggregates, prior reports for that item or all of these.

 

If you had a certain level of income and expenses reported in prior years and when filing this year, your income and reported expenses are both in line with past returns, as well as well within the norm, then your likelihood of being selected for an audit is really remote, probably under 0.01%.  The IRS keeps the precise nature of its scoring a closely guarded secret, because they do not want taxpayers gaming their returns based upon likelihood of getting caught.  But the IRS' bark is far worse than its bite when it comes to rather routine reporting of routine income and expenses.

 

In short, if your reported interest expense is likely to be exceptional in some way that would call attention to your return, it would be far better to have a 1098 upon which to justify your claims.  And having a 1098 can be especially helpful for those who are poor at record keeping, who are paying from a coupon book and aren't getting monthly payment statements or have difficulty calculating interest from their payments. 

 

But those with monthly statements and canceled checks from their banks whose interest expense is typical of taxpayers of comparable means have little to worry about.  They are UNLIKELY to be audited and could fully justify their deduction IF audited.

Go beat Litton and OCWEN up over this, but do not let it keep you awake at night! 

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rl

Yes, I have the same issue. I called Ocwen tonight and asked them about my Litton 1098 form because the ocwen 1098 doesn't include the Litton interest and taxes that I have paid. Their response was that they would be mailed out by Jan 31st and that I would receive my Litton 1098 and Ocwen 1098 by the 1st or 2nd week of Feb. They stated that Ocwen would be sending the Litton 1098. I am not feeling confident about it. So, I would suggest that you call and ask Ocwen the same thing, I am curious to see if they tell you the same thing. Please post their answer. I checked my statements from Litton and they don't show the year to date interest and taxes paid, so someone has to provide this 1098. I will also call the IRS for their assistqance with this.

Thanks

 

B wrote:
I just viewed my 2011 Form 1098 on the Ocwen website in preparation for filing my taxes for 2011.  Ocwen assumed the role of servicer on my loan in September 2011 from Litton.  Yes, out of the frying pan and into the fire I've gone.
The Form 1098 on the Ocwen website includes ONLY the interest paid in 2011 to Ocwen, omitting entirely 8 months of interest payments that were paid to Litton!
I've just written to Ocwen to inquire, and also checked the Litton Loan website, which now consists of a message box referring viewers to Ocwen.  I understand that Forms 1098 must be mailed by January 31 but am concerned that Litton may not uphold their responsibility to do so. 
Does anyone here have any idea of how I should proceed if the correct Form(s) 1098 are not received? 
Whose responsibility is it to provide?  Is it proper for Litton to issue one and Ocwen to issue one, each reflecting the interst paid to them?
Has anyone else who has gone from Litton to Ocwen seen their Form 1098 and does it reflect only payments to Ocwen as well?
   

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In same boat
Hey all!  I emailed Ocwen and complained about the fact I didn't have Litton's interest information yesterday and lo and behold today I received it via email from Ocwen!  I would say give it a try--email them from the Contact Us page on their website and give them both barrels.  Worked for me.

Take care and thanks for all the advice!

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delores diciccio
                Bank of NY Mellon wasn't even made until 2007 by joining of two banks. They are all crooks. BOA, CW, MERS all made loans for people who didn't qualify or for people that they knew would later defaut and they would foreclose. The problem was they couldn't see into the future and see the mortgage/credit collapse of 2007. If they foreclosed before it was a win win for them. The housing prices were going up up and away. Now all these houses are worth about half of what people owe. It was unsustainable. I mean for God's sake the minimum wage is still $7.50??? an hour. How can anyone buy homes that cost so much? Only the top 1% that the tea party people and the rest of us are so mad about. My home is in foreclosure also in New Jersey (Thank God) because they have ground to a halt due to Judges not going for improper transfers from BOA to Bank of NY Mellon etc. Bany of NY Mellon made 3 Trillion dollars in 2010 pre tax and didn't pay a dime in taxes. In fact they got $675 million in a Federal Tax Return off of our backs (the 99%). The CEO last name Kelly ( I think) paid himself something like $20 million the same year. He has since stepped down because of the outrage from the tea party and other middle class groups. Bank of New York Mellon TRUST, that word should give you a clue has more than 14 tax shelters and gives millions of donations to people running for office. Everyone should educate themselves on what's going on in this country. Obama is the worst president EVER. He is worse than Nixon. Bush gave Wall Street billions of TARP money to the banks but there was oversight of it. Recently, after fighting in court for two years to get public information that the Obama people didn't want published we find out that under Obama  they gave all the banks (including BOA, Bank of NY Mellon Trillions and Trillions more that even the Congress didn't know exchanged hands with NO strings attached. Free money from the taxpayers. So in essence, we are paying a bank to sue us for a home we live in that they got from our taxes to stay in business. WAKE UP PEOPLE. DON"T give up your houses. Fight them tooth and nail. Go out and vote in November. The United States is so deep in corruption on so many levels. I think anyone in office should have to take a lie detector first before getting voted in. The whole thing is disgusting.
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sparkey
I have been pressuring Ocwen for 3 weeks.  I have a letter file from them stating that they are supplying the Interest for the whole year.  Additionally, 3 different people have informed me of the same thing when I called.  We'll see how this plays out.  I emailed them again after the 1098 was posted for only the 'Ocwen' months a few days ago.  Hopefully, I'll get it soon.  As for the guy who posted all the mumbo jumbo regarding changing the tax laws???? Seriously???? We're on here due to the fact that we NEED help getting our tax's done.  You go fight that fight and report back and let us know how it works out for you

Love and Kisses,

sparkey

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appreciative

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As for the guy who posted all the mumbo jumbo regarding changing the tax laws???? Seriously???? We're on here due to the fact that we NEED help getting our tax's done.  You go fight that fight and report back and let us know how it works out for you

Love
and Kisses,

sparkey

 

I guess you are criticizing ka's informative post.

 

ka correctly explains that having a 1098 is actually unnecessary to filing your tax return.  Everything in ka's post seems to be accurate.  Just because you don't understand it, you shouldn't criticize ka's useful post.

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angry&NOT TAKING IT
ka 

yes you are correct re

"Think about it for a minute.  YOU get a 1099 on the interest YOU receive as income.  IF THE 1098 FAILS TO IDENTIFY THE MORTGAGE INVESTOR RECEIVING THE INTEREST, WHAT IS THE ASSURANCE THAT THE GOVERNMENT IS ACTUALLY BEING INFORMED ABOUT THE AMOUNT OF INTEREST PAID AND RECEIVED?"


 i got a notice from the ftb stating earned income of 25k from litton 

after they took over servicing from FIL.


i highly suspect that 90% of the vintage MBS 2005-2007 were only creating an actual "investment" of servicing rights that survived after "fabricated default and swap" payments reconciled the totality of the trust"mbs" thus closing it. Leaving the value of the"servicing rights" as collections of "distressed debt" with all profit to the servicing  criminal ! 2002 i believe the fed money laundering regulation was removed from "mortgage servicers as apposed to servicing" not sure which one it was but....with "forced insurance [profit scams] & mortgage payment" streams sent off shore. wow ...i sound like a serious lunatic ..hahaha

but..litton with 450,000 loans to use the insurance "escrow" of $16,000 per year on just my loan...well you do the math... nice profit margin!

vampires they are!

 

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Helen
Hello, I sent Ocwen an email off of their website requesting when I would get  the Litton loan 1098 form yesterday and already got an email back with a copy of the 1098 from Litton and it looks like they were showing me that it was included in January's mortgage stmnt that got mailed. You should be able to either email them or check your stmnt that came this month. Hope it helps!

PS DONT set up any future payments with them over the phone. They deducted my pymnt five days earlier and put me in the negative in my account! I shouldve known better! Idiots!
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Eva
I also had my second mortgage loan sold to Ocwen. I just spoke to my accountant. He said as long as you have the 1098 from last year, you can enter Litton's tax ID number and estimate the interest. He said that if Litton is out of business, they might not send out 1098's as it costs a lot of money to do so. He also said that you have to legally give them two weeks past the 31st to receive the 1098.

Hope this helps.

Eva
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Eva
BTW, just to clear up a matter, my accountant also told me that legally, Ocwen is only responsible for  the 1098 for the time after the loan was sold to them. They will not provide a 1098 for Litton, so do not wait for it, no matter what any associate at Ocwen told you.

Eva
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s

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BTW, just to clear up a matter, my accountant also told me that legally, Ocwen is only responsible for  the 1098 for the time after the loan was sold to them. They will not provide a 1098 for Litton, so do not wait for it, no matter what any associate at Ocwen told you.

Eva

 

This seems to be roughly consistent with what ka said above, but you are more succinct.  Thanks!

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kad6557

For everyones information I just received my 1098 from Owcen.  My loan was also transfered to them from Litton last year.  Also in the envelope was a 1098 from Litton which showed my interest and real estate taxes paid.  So hang in there it appears Ocwen is on the ball.

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Ness
I read this forum last night and emailed Ocwen through their website. Got my Litton Loan 1098 with no hassle. Surprised at the quick response.
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M.

We just received both of the 1098's (Litton and Ocwen).  Ocwen sent both out in the February billing statement.

 

Look for the February billing statement and it will probably be in there.

 

M.

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Blossom

While not entirely revelant to issues here, well worth taking note of this agreement signed by participating parties (August 31st - December 15th, 2011) required by recently created New York State Department of Financial Services  as condition to allowing Ocwen’s acquisition of Goldman Sachs’ mortgage servicing subsidiary, Litton which states:  http://www.dfs.ny.gov/about/press/clocwen.pdf

6. Servicer shall implement policies and procedures to ensure that borrowers' account information is accurate and complete, and shall promptly remediate any inaccuracies in borrowers' account information.

20. As of the effective date of any acquisition or transfer of loan servicing portfolios to servicer, Servicer shall establish and have up and nunning a toll-free number to handle aII in-hound calls from borrowers previously serviced by another servicer. The team handling such in-bound calls must have access to electronic and paper-based borrower records and knowledge about Servicer's servicing policies and procedures, including loss mitigation programs, collection practices and payment dispute resolution.

Press Release dated September 1, 2011- http://www.dfs.ny.gov/about/press/pr110901.htm

Contact Information for New York State Department of Financial Service
http://www.dfs.ny.gov/about/contactus.htm
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Litton/OCWEN interst

If you log on to your account at Ocwen's web site and click on the ammortization icon it will pull up a pdf of your personal loan history, including the years your payments went to litton. This will provide you with a monthly break down of principle and interest payments for every year of the loan.  You can then total the interest payments for the 8 months at litton enabling you to complete your taxes without estimating.

 

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Litton Interest

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If you log on to your account at Ocwen's web site and click on the amortization icon it will pull up a pdf of your personal loan history, including the years your payments went to Litton. This will provide you with a monthly break down of principle and interest payments for every year of the loan.  You can then total the interest payments for the 8 months at Litton enabling you to complete your taxes without estimating.

 

(After logging on to your personal account at OCWEN it will present many icons, you must click on (Payments and Amount Due) first. It will then pull up another screen listing your information and also provide several more icons at the bottom of page including the amortization icon.)

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B

Thanks everyone for pulling together on this one.  So glad to hear that others have requested their correct 1098s from Ocwen.  As for me, I've received a response to my request from Ocwen which states that Ocwen has mailed out their 1098 (haven't received it yet) and that Litton will also mail out a 1098.  Ocwen further states that after Litton has mailed out their 1098, it will be available to view on the Ocwen website.  As of today, 1/30/12, only the Ocwen 1098 appears on their website...

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teresa

I  just spoke to Ocwen, they will be sending 1098 tomorrow, along with littons 1098.  I hope this is true.

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gracie
If only my problem was as simple as getting the correct interest statement......no offense to anyone, but, Ocwen has not even credited my payments correctly!

I find myself in arrears by several thousand dollars, and my calls. letters. fax. and emails, bring nothing other than aggravation.  I've even had my bank, BoA, trying to assist in getting my payments posted correctly......to no avail.

It's a mess and my next payment is due and at this point, I don't know if I should make it or not.  I have 3 different billing statements....each claiming I owe different amounts for the same month!

For some unknown reason, when Ocwen bought out Litton and the accounts were transferred, all of my payments were put into a suspense account......and I've never even had a late charge to warrant this action.  They've even charged me to have my home appraised!  What?? 

If anyone could offer some advice,  I would be very grateful.
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Mandy

 I am also looking for my 1098 for Litton and Ocwen as I have not receieved either.  The other thing that worries me is I looked at the copy of the 1098 for payments made to Ocwen and it contains only the other persons name who was on the loan and not mine also.  I am the one using the statement for my taxes as the other person who was responsible for the loan defaulted on payments several years ago and I took over all the payments myself.  I have been told as long as I can provide proof I am on the loan also as a co-signer I can still use the form.  Is that true?  Also, can someone please provide the email that they are using to contact Ocwen as when I go to their website and click contact us, there is no email address and where it says "email-click here", I click and nothing happens.  Funny thing is my payment for February is due tomorrow and I have not received my statement for it yet either.

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f

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The other thing that worries me is I looked at the copy of the 1098 for payments made to Ocwen and it contains only the other persons name who was on the loan and not mine also.  I am the one using the statement for my taxes as the other person who was responsible for the loan defaulted on payments several years ago and I took over all the payments myself.  I have been told as long as I can provide proof I am on the loan also as a co-signer I can still use the form.  Is that true?

 

Go to the IRS website at http://www.irs.gov .  Search the Forms and Publications and find IRS Publication 17.  Then search this Adobe document for "1098".  You should find the answer to your question there.

 

This is NOT tax or legal advice!

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cooladi
Gracie, what you posted worries me.  If you have not done so already, please get together all the documents you can showing the transaction history of your mortgage both when it was serviced by Litton and now by Ocwen.  You need to take a careful look at how your payments have been applied to figure out why your account has been placed in suspense.  Some of the typical things that cause this are if Litton or Ocwen failed to pay your private  homeowner's insurance policy from your escrow account and then 'force-placed' your homeowner's insurance with a much more expensive company.  Also, if they've improperly charged you late charges on mortgage payments, they could have begun applying part of your payments to those late fees, making it appear that you are then late on the payments you are making because they are not being credited to the current month in full, and then charging you additional late fees.  If you are in Bankruptcy, they may not have communicated there are changes required in your mortgage payments, causing them to then misapply your mortgage payments.  I am very concerned that they are fast tracking your property for foreclosure, so if you can manage to do so, I think you should get legal advice.  Please keep us posted on how things go.
As for my 1098s, I STILL as of Feb. 1, have not received them by mail.  Have not received by mail my Ocwen Feb. mortgage statement either, although I have paid the Feb 1 mortgage payment.
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eva m
I stand corrected. Contrary to what the representative at Ocwen told me, today I received the 1098 for Ocwen and Litton in my February billing statement from Ocwen.

Eva
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Floyd

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If only my problem was as simple as getting the correct interest statement......no offense to anyone, but, Ocwen has not even credited my payments correctly!

I find myself in arrears by several thousand dollars, and my calls. letters. fax. and emails, bring nothing other than aggravation.  I've even had my bank, BoA, trying to assist in getting my payments posted correctly......to no avail.

It's a mess and my next payment is due and at this point, I don't know if I should make it or not.  I have 3 different billing statements....each claiming I owe different amounts for the same month!

For some unknown reason, when Ocwen bought out Litton and the accounts were transferred, all of my payments were put into a suspense account ......and I've never even had a late charge to warrant this action. 
They've even charged me to have my home appraised!  What?? 

If anyone could offer some advice,  I would be very grateful. 

 

Gracie

 

You haven't gotten a response largely because you posted in the wrong thread.  This thread is about IRS Form 1098s and Litton / OCWEN's failure to account for interest.

 

Your post seems to be about plain ordinary mortgage servicing fraud, which is really the entire purpose of this web site.

 

You seem to be describing a familiar pattern of behavior that Litton and OCWEN have been doing for years.  This pattern was a source of great profits during the subprime bubble.

 

Servicers use various ruses and pretexts to precipitate a default and then initiate foreclosure as a means of stealing a borrower's equity.

 

This behavior was somewhat more common and familiar before the crush of foreclosures brought on by both economic meltdown and strategic defaults by underwater borrowers.

 

I would suggest that you create another new thread with an appropriate Subject and repost your information and seek the specific help you need.  You should also scroll back or SEARCH and look at many of the older posts.  The situation you describe was common, but it hasn't been a prime topic of discussion for some time. 

 

Also, BEWARE, there are several swindlers, most notably a criminal who posts under Mike H. and various other aliases, who troll this site looking for victims.  If someone offers to help you for money or directs you to another site set up by swindlers, take care!

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Mandy

Well, low and behold what was in my mailbox today when I got home.  TWO 1098 forms, one for Ocwen and one for Litton.  They even contain both borrowing names!  Came with my monthly statement.  I love the fact my payment is due on the 1st of the month and they did not send out a statement even in enough time to mail back a payment if I was going to mail it.  Thank goodness for pay over the internet and phone.  Thanks for everyones help, off to finish my taxes!  Keep an eye out for your next statement cause the forms will be in there.

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Berta Courteaux
  1. I recently received a 1098 from Ocwen for our second mortgage with everything separated; taxes, principle, interest and I have not got one from Litton and really will be shocked if I do considering that I had been wondering for quite awhile why they never separated the payments.  I also never understood why my taxes would be taken out of the second mortgage since the taxes here are by the value of the home; not whether you have one or two mortgages.  We started out with this with a bank, shortly after they sold it to Upland Mortgage, shortly after that it was sold to Litton, and now to Ocwen who seems to want money, money, money, every time you turn around.  Our first mortgage has always been taken out of our bank account on the same day every month for 13 years without one ever being late.  We also have kept up on the second mortgage but I question why one servicer separates the payment and Litton did not.  I looked at the original papers we signed and there is no money mentioned except the house payment which would make our 2nd paid off in a certain period of time but by doing this and trying to charge taxes, etc, the principle has been going nowhere and it is not an adjustable rate. They have also threatened to get us homeowners insurance and take the money out of our payment  even though I told them we had it and they should know it if they took this over from Litton but to be on the safe side I had my insurance agent fax the papers to them and I also mailed them to be certain. I knew shortly this was going to be a nightmare and really tempts me to just leave this place since the value has dropped so badly and my husband had to file chapter seven and we did not re affirm although we said we wanted to keep the house but the credit reports have us as bankrupt and charged off or something to that effect and do not account any house payments we make any more. I pay online always and print out the payment invoice immediately and the bank statement the day the money is posted for proof of everything paid; I trust none of them.  I have read that basically we could just walk away. It stinks that the bank and servicers do not report our payments to the credit agencies and in my mind if it was already charged off in the bankruptcy when Ocwen took over litton which it was  then we should owe them nothing. We owe them so little compared to the first mortgage it is just tempting to let them foreclose because the only one that will get any money will be the first mortgage holder; there will not even be enough for Ocwen.  I believe that from what I have been reading that is the way it would be.  They are rude, terrible people who do not care one bit about who they are threatening even though so many people are losing jobs or having pay cuts; we could walk away and get an apartment and save money and believe me it is getting more and more tempting when all of the above keeps happening.  We did not want to file bankruptcy; no one does but we had no choice but we wanted to keep the house and now they do not even record the payments we make to the credit agencies so if we pay it off is it even ours? Sorry for the length of note but thankful to get some of the feelings out so thanks for reading.
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