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Countrywide/Litton objects to our Ch. 13 - Any suggestions?


almost_there
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Filed Chapter 13 on May 16th, 2006. Our first mortgage was sold from Countrywide to Litton Loan Servicing around the end of April 06 - first payment wasn't due to Litton until June I believe. Litton wasn't listed at all in the Chap. 13....anywho, so Friday afternoon, I get a letter from the lawyers representing Countrywide that they are objecting to our BK plan for reasons including "we don't feel debtor can comply with the plan" and "plan was not made in good faith by the debtor" (WTF?) Countrywide doesn't even have this account anymore. Which leads me to wonder, who gets the mortgage arrears that are in the BK plan - Countrywide or Litton? My husband thinks Litton is a scam...based on my internet research/quick Google search of their name, I'd say we've found our selves in bed with some real snakes!!! They've got a bad rep and lawsuits nipping at their heels....information I will be sure to pass on to my BK attorney who is scratching their heads over this notice of objection. The paralegal I've been dealing with was in very recent communication with the opposing firm and was shocked at this development.

I re-read the letter from Countrywide's attornies, and I noticed that it states Litton as the mortgage company so do law firms go with accounts when they are sold?

Since Litton took over our loan, we've had like ZERO communication from them. I know this is going to sound incredibly dumb, but we didn't make our first payment on time and will be sending 2 within this week, which by my information should take make us current with them. Although, I noticed our online statement (they have not mailed me a paper one) has the arrears listed as the balance due. After reading some of the complaints against Litton, including that they don't credit payments received and refuse payments, I don't feel as bad about being stupid and missing our June payment because if I had they may have "lost" it anyway.

So anyone got any advice? Do ya think missing that June Litton payment caused the objection? Any guesses on who is pulling the strings - Litton or Countrywide? Any word on these 2 companies being in bed together?

My lawyers office told me not to worry because she's never seen an objection thwart a Chapter 13...but I have a knot in my stomach that just won't quit and need any reassurance (or survival advice for the worst case scenerio) I can get.

I'd like to say it's good to be back here on these boards, but under the circumstances I'll just say "hi" and pretend I didn't know better than to be an old pro at this $hit and still wind up in a BK :oops:

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They can file all the objections they want, but that doesn't mean the court or the Trustee is going to agree with them. I'm sure that the Trustees and the Court are aware of any shenanigans that both CW and Litton get up to, you're not likely the first to have to deal with them.

As with so many things in this game, companies have standard tactics that they try .. even a blind pig finds a truffle now and then ! If your budget shows that you certainly can keep up with the Plan and the Trustee has no issues, chances are these objections will be denied w/o much wrangling.

As for this Litton company 'losing' payments, I'd make DAMN sure that every single payment is documented and that you send payments in such a way that you get a delivery confirmation every single time.

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