Mortgage Modifications CAUSE foreclosure – a first-hand account

In response to my blog entitled “How Loan Modifications Cause Foreclosure,” I received the following comment.  I’m posting it here because I want everyone to see that the issues I blog about are real problems that happen to real people.  So without further ado…

I have a mortgage with Litton Loan Servicing. About 1 1/2 years ago I was having some difficulty paying all my bills. So I called all my creditors and to my surprise they all had options to help me, including my mortgage company, Litton. I never told Litton that I could not pay their bill. I was just looking to see who could help. They encouraged me to apply for a HAMP modification. After several months I got accepted into the trial modification period. I asked them what that was. They said it was the final step that takes no more than 4 months, just make your payments on time and you will be fine. I thought all was well. I made on-time payments. I stayed in touch like they asked. After 7 months of timely payments I called them as I often did to check in. Finally, after 7 months, they said I was denied for some unexplainable reason and owed them $3000 and that my home was in default!

What kind of help is this?

I could have paid my full mortgage and not ended up in this debt. I do not understand how this is considered help. I have been paying hundreds each month in credit card bills. Meanwhile, my mortgage company is reporting me delinquent. I was worried about my credit when I should have been worried about my house. I could have easily paid my full mortgage. I cant live in a little plastic credit card. Who came up with this plan to help people?

I have spoken to dozens of people, mostly couselors and loss mitigation reps, some nice, some not. None of them suggested that I consider saving my house and not my credit cards! I don’t know who to trust anymore.

The best part… The loss mitigation side of Litton is promising to resolve the mistakes and get me a modification BUT the original mortgage department side of Litton has been pursuing foreclosure and has now told me that my loan is being sold to Green Tree Servicing on January 1st. Green Tree is the company that’s being sued for killing someone with harrassing phone calls. I don’t expect they will work with me and make it all better.

Here was my response:   If you’re facing foreclosure and credit card debt, you are a good candidate for a foreclosure defense/bankruptcy consultation. Give us a call for a free consult.  888-450-1549.  Whatever you do, please don’t give up.  Mark

Mark Stopa

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2 Responses to Mortgage Modifications CAUSE foreclosure – a first-hand account

  1. Mark S. Reed says:

    Hello what do you do when the courts constantly overlook motions filed, and we hired some attorneys who fell under the loan modification scam, we presented this information the Civil court, to show them hey we tried and hired 2 different attorney firms, neither which has helped us, and State Attorney’s office closed one down, with this information submitted to the courts the seem to still be leaning towards the lender with favor, I might also as that we have submitted all kinds of evidences on income, showing that lender took complete advantage of borrower by placing him in a loan he did not qualify for, not did this refinance pay off any debt, now my husband is liable for the $80,000.00 loan he did not qualify for as well as all the debt this refinance was to have taken care of. I’ve never heard of any loan that would allow the following to happen: Disregard income, when homeowner was in Bankruptcy with a very low credit score below 500, then last 3 years income does not add up over %5,000.00 for past work history, how could a lender have conducted a loan for &80,000.00 with one person who clearly did not have any bank account to show assets, nor did lender pay State of Florida Department of Revenue liens, which would have disquialifed him from the beginning since they both amounto $40,000. They conducted this loan to take the equity of the home and caused a first mortgage late default. I reoported this the to Federal Trade Commission, The White House, HUD, TARP, HAMP, and to date we are being possibly served with a Writ of POssession what does one do?

  2. Thanks for revealing your ideas on this blog. As well, a myth regarding the lenders intentions if talking about foreclosed is that the financial institution will not have my repayments. There is a degree of time the bank can take payments occasionally. If you are too deep inside hole, they are going to commonly desire that you pay the actual payment completely. However, i am not saying that they will have any sort of repayments at all. Should you and the loan company can be capable to work one thing out, the particular foreclosure method may stop. However, in case you continue to neglect payments beneath new approach, the foreclosure process can pick up from where it was left off.

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