My loan was sold to Litton about 3 years ago. Prior to this year, I didn't have much of an opinion on the company. I made my payments on time every month - they left me alone.
When I purchased my home (back when interest rates were great) I got into a 2 year ARM. This is my first home, and if I would have done it all over again I would have locked into something, but hey, I was young, I was looking for the best deal.
Last year, my loan went adjustable - sky-rocketing my $903 mortgage payment to almost $1500. I had to do something and I had to do it fast... So I called Litton to see what they could do for me.
I was told about their loan modification "program" which would allow me to lower my payments and lock my interest rate for another couple years. I wouldn't have to go through all the formalities of a refi, I would simply have to sign a few docs, get those notarized and be done with it. Sounds simple right?
I received the first round of loan documents in January 08 (I have an 80/20, so I did mods on both), signed them, notarized them, sent them back to Litton promptly.By the end of the month I was notofied that the modification was completed on the 80 loan, but they mis-documented the interest rate on the 20 - so they were going to resend the documents again if they had to. I never reseived the documents.
May 08 rolls around and I get a call from their Collections Department. The VERY rude woman claimed that I have not made a payment on my 20 loan since December... I've NEVER missed a payment on either one of my loans. Come to find out my payments were being held in a suspense account and that Litton was waiting on my modification documents - documents that they never sent to me. But for whatever reason, they continued to hold my payments in suspense.
After many frustrating phone calls, I was able to get in touch with someone in their Loss Mitigation Department who was willing to resend the documents that were supposed to be sent to me in the first place. I received them, signed them, notarized them and sent them back promptly. I decided that once this was all over I was going to refinance through another company since Litton treated me so poorly. So about a week later, I had my credit ran to qualify me for a refi - lo-and-behold I see that Litton had reported me delinquent on my 20 loan since December - this was in June!
I got in touch with Litton, wrote letters, contacted the BBB, contacted the credit companies - anyone that I thought would resolve this.in the meantime, Litton contacted me that the loan modification for the 20 went through and that my credit report would be adjusted accordingly. I was sent a letter stating that this is what they would do, so I figured that this was put to rest - WRONG.
We are now in August and I have had two credit card companies lower my credit ceilings by TENS of THOUSANDs of dollars for delinquent payments showing on my credit report. I reran my report and sure enough, Litton NEVER re-reported anything to the credit agencies. I'm only 25, but I have worked very hard to maintain VERY good credit - I've strapped myself in order to never have a late payment... All that hard work is nothing more than dust in the wind. I feel for those that are going through even rougher times than myself, if Litton has been so negligent with my situation, I can't imagine how they treat those in even worse situations.
I recently lost my job, and now would have been as good of time as any to have that credit available - now its not. I'm back fighting with Litton to fix this, I call them every day and they say they are "working on it". When I went through with this loan modification, I was not notified that my payments would be held in suspense, nor was I notified that if they were that that would be reported to the credit card agencies... If I had known that before I would have bypassed this and done a real refi through an entirely different company.
Litton needs to get their act together and they need to take ownership of their negligent actions - based on what I have seen on complaint, they are destroying too many American's lives due to lack of diligence and integrity. God Bless America if all companies succumb to running business this way.
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