My home is on a 15 year fixed interest loan. Six years into the loan my personal income dropped by 60% making the higher loan payments impossible. I asked Litton for a refinance but they refused, I started to fall behind and once behind Litton would refuse to let me talk to their lending department as all paths go through their collectors. They would actually yell in the phone "WHAT ARE YOU PAYING TODAY" and they wouldn't accept partial payments.
The first foreclosure started and I managed to pay the balance off, I intended to wait for my credit to be cleared so I could refinance as I knew I could not pay the $2800/month payments and my balance was 40% lower so I had tremendous equity. The first month current they reported current but "under forclosure" no loan company would touch me with that. The second month, after my call to Litton the Credit Bureau reported "eight months behind" with the foreclosure tag removed. The third month stayed the same and I couldn't get through to Litton to have them remove it because now I was falling behind and you can't get past a collector if you owe them money.
The second foreclosure started, I called Litton a week before the forced sale and got a pay off balance, I took a check to Northwest Trustees their legal enforcers and they said "you are current". The next months litton statement said I was $1,600 behind, when I called them to ask why they yelled "You need to pay this off" and followed by the legal statement "I will put down that you are refusing to make your payment" before hanging up. The second month suddenly the balance due was in the $6000 range which is impossible.
I am sure I am headed to another foreclosure when all I wanted to do was reduce my payments to what I can now afford with the 40% equity serving as security but Litton doesn't want that, they want my house, period, and will do whatever dishonest thing they can do to get it. Ironically in the end the government bail-out will likely pay them the difference for me losing my house so they are out nothing while I lose $100K in equity and my home.
This is a predatory company and something needs to be done to stop them!