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Litton Loan Servicing forces us into escrow

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I was once a regular here. Back in '03, this site helped me pave the way to better credit. I was keepin' things paid and clean...all to buy a home and start a family. My dreams of home and family came true, and now it's turning into a nightmare....

Let me explain.

We closed on the house 2/2/04, have had our own HOI and property tax as our responsibility since DAY ONE...as our loan documents include. Have fallen behind from time to time on property taxes but ALWAYS had current HOI, it was on auto-draft to the same insurance company we've always had through the same bank we've always had. Throughout the time we've lived in this house, we've been asked to provide proof of insurance and our agent has always provided the mortgage company with it on our behalf.

By spring 2006 we'd had a baby and were in the process of adopting our now 17 year old from foster care, unfortunately, we really didn't handle our budget well for those additions and we had fallen behind on our mortgage. Facing foreclosure we elected to file Chapter 13, which we did in May '06. Countrywide initiated the foreclosure and Litton Loan Servicing bought it very soon afterward - which was my first clue to trouble, who buys a loan in foreclosure!?

Well, they first objected to our plan, which didn't do them any good. But also, in their claim they claimed we owed them like $1200/$1300 for escrow! We told our lawyer we didn't owe that money, that we pay our own HOI and taxes, but because we wanted to get moving on the 13 and get it behind us, we agreed to just let them have it and not put up a fight, following our lawyers suggestion.

So, since May of '06 we've been paying the trustee as scheduled and staying current on our mortgage payments, we must stay current on our mortgage payments or face "the drop dead clause"

Throughout the 13, Litton has been sending us just a statement sheet of paper, without the date of our payments or anything else on it really, but the escrow and suspense balances have been going up and down throughout the time we've been under them. No explanations of what these balances are or activity of payments - nothing!

Then, on November 14th, I received a letter from my HOI company saying "thank you for your recent payment of $597. You will be getting a refund of ..." Said payment received on 10/27/07. Right away I wondered if Litton had anything to do with this. So I called my agent, she asked me "did you recently refinace your mortgage?" NOPE. Litton had paid my year's premium, which isn't due until next February, right out from under us!

I called our BK attorney and said "we didn't owe them escrow when we filed, but now they are forcing us to owe them!" He suggested this is becoming a rising problem with mortgage servicers and that I should request a full account summary from Litton, which we did CRRR last week and wondering if they'll ignore the request like I've seen them do to many others (15 pages on RipOffReport.com!!)

Well then I called my county auditor to inquire on the status of our past due taxes, we plan to pay in full within the next 2-3 months, and I find out that Litton paid half a year's back in March of this year! They paid in March and I just found out now in November, by calling the auditor myself, no information from Litton!

By the way, Litton also has an unsatisfactory standing at the BBB, over 400 complaints when I checked. These people are the bottom of the barrell.

We've also found many problems with the house. Our realtor suggested we'd be fine to pass on the home inspection, after all, he was a friend of the seller! and now here we sit with a house needing a new foundation because we fell in love with the idea of starting our family in this cute old house - damn you, hindsight!

Anyway, after 2 rate adjustments, finding all the "issues" this house has, and now Litton trying to F us over, we're tinkering with the idea of a 7. All that repair I did, all the help I was given here, and I find myself facing starting ALL OVER AGAIN. Bah! This sucks.

But, my objective for this thread - sorry for the kinda rant - was to ask for advice on dealing with Litton. Anyone else have knowledge of this company? I know what they're doing is probably illegal and we can go fight 'em, but part of me also wants to say "here, have your damn house then!" and take the 7. My hubby says we should ride it out in this house, I'm on the fence. Litton has such a terrible record from what I've seen that I fear we'd be fighting a loosing battle to try and save this house much longer, as Litton is clearly willing to do whatever nasty thing they can to steal people's homes.

CIC, you helped me once before, here I come knocking again...

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P.S. After browsing through some of the 15 pages about Litton on RipOffReport.com I've seen a pattern in them going after people for these fees and interest on things people didn't even know they owed. I now have a record, via the insurance company and auditor, of what they've paid "on our behalf" - I think they are attempting to make us default on items we didn't even know we've owed until just recently, forcing us to "drop dead" as the clause suggests.

Sorry I didn't make this part of it clear in my original post.

One couple made it all the way through their 13, only to have Litton come after them for an additional 20K in miscellanious fees and what not. So you see my dilema, even if we make it through the 13, Litton is still going to be there and being in 13 doesn't really allow me to find a more comfortable lender.

And I bet Litton doesn't try to inform people of what these fees and things are for because they're hiding behind the Ch. 13's!!! They can't attempt to collect because of the protection that a consumer has under BK...so when the 13 is done, they've taken that much more of your money before they take your home and you won't even know what hit you!

Oh, those creepy little turds...wow! my mind is going full speed, and spewing here, I know, but these guys...holy cow, just in the frame of typing this for your reading pleasure, I've stumbled onto the scam that they're running. And one of the first things my husband said about the insurance thing was "if they claimed to not know we had HOI, how'd they know who to pay and how much?"

Now I just know some of you guys are going to have some expert legal advice on what to do to these jacka....ls. LOL

I think I just found myself a hell of a big fish to fry - whether I keep my house or not.

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Hello.... I have had the same situation with Litton Loan. They bought my mortgage on a rental property I bought back in 2004. They did the same thing with my HOI when I was late paying the insurance company. I was really Pi**** off. They didn't pay MY HOI, they got their own temporary HOI?????? As far as taxes, same thing too. Now I have an escrow for taxes that I would have paid.....late, but evetually paid. I wish my credit was in better shape and I would re mortgage with a reputable mortgage company and drop these low lifes.

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Almost and Chelsea if you need info on how to deal with Larry Litton the liar and thief shoot me a pm.

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thank you lefty, pm on it's way.

and an update - after spending almost all day researching, I've found that this rabbit hole goes deeper than I could've even imagined. It's called Mortgage Servicing Fraud and it's RAMPANT - I would advise anyone that has been in foreclosure or BK within the last 3 years or so to go back and LOOK long and hard at the details of your situation, you may have been forced into default by someone attempting to STEAL your home.

We are lucky, that we caught them early on and that I know how to enforce my rights. Litton has nearly 1200 pages of complaints at the FTC, is going to court in CA tomorrow for a class action for charging late fees within 60 days of the transfer, and people are starting to catch on to what is going on here.

My attorney is looking for a test case to get into this area of practice, and because we already have a case in BK court, that's a good thing for us. My lawyer's giving me 2 hours next week to bring in what I've found and he's ready to roll on these SOB's.

If we do leave our home, or even if we don't, we aren't going to go quietly.

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I take it you have already sent a qualififed written request to Litton. Do not forget to send one to Countrywide as well. There is a sample letter on the HUD site, or you can find a link in the mortgage section as well.

I am not defending Litton Loan Servicing, but they are only as good as the information supplied to them. By this, I mean, If Countrywide supplied funny numbers, then Litton would receive those numbers as well.

Ann Holden is very adamant against Litton, and she is a member at msfraud.org

She also has a Yahoo group, so you may find this to be a good search. If memory serves me, there is also an attorney that she is familar with, that has tried to bring class action suits against them, but to no avail. His name is something like Kwame or Kiki, or Keku. I am sure you will run across him somewhere.

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Thanks guys. In addition to the legal action we are preparing to take, I'm also telling EVERYONE that I know about this fraud and the website msfraud.org I even explained this scam to my insurance agent and she told me that probably explains the magnitude of customers she has that keep having to send proof of insurance to their lenders, over and over again. Actually, I'm surprised the companies keep asking for the proof if they have no intention of acknowledging it.

Our refund from the insurance company came today, at first we wondered if we should even cash it when it came, but after learning of Litton's crime against us, we'll happily cash it and use it for whatever purposes we wish :)

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Got my RESPA acknowledgement of our request today. Also I've started talking to local media and attornies all over the country.

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Almost, have you brought your ordeal to the attention of Jason Lewis? I know he does mainly politics but he also very sharp on ecconomics and issues like yours. might be worth a e-mail to him to see if he is interested in reporting your story on his show.

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