Explore your opportunities! Create an account or Sign In
The most trusted and popular consumer complaints website

Litton Loan Servicing

Posted:    

Predatory loan practices

Complaint Rating:  96 % with 71 votes
96% 71
4.8
(1) Litton added additional charges on to our account after our agreed to loan modification... to this date they have refused to remove the illegal charges.

(2) Even though we paid for our own insurance Litton added insurance to our account costing three times the normal premium charged by our insurance company... they finally removed bogus insurance charges when they found out we were part of a class action suit against them for their predatory lending practices.

(3) They called us recently to say we had not made the most recent mortgage payment... WRONG... when I called them back after checking with the post office*, they were suddenly able to find the check. They said because they received it on a Friday, it could not be processed until the next week... WRONG AGAIN... the check was received at 6:24AM on Friday. They had all day Friday to process the check.

(4) When they call, many of their agents tend to be very unprofessional and abusive.

*Because of Litton's past behavior, I send our payments via registered mail. That way they have to sign for the payments. I also photocopy the checks before sending them. I am doing such to protect ourselves with a complete paper trail.
Complaint comments Comments (48) Complaint country United States Complaint category Mortgage Companies

Comments

Sort by: Date | Rating
A  17th of Apr, 2007 by    +1 Votes
FYI:

There is an on going class action lawsuit against Litton Loan Servicing for their illegal loan practices.

http://www.lieffcabraser.com/loan-servicing.htm

Litton Loan Servicing Class Action

On October 26, 2005, customers of Litton Loan Servicing, LP (“Litton”), filed a class action complaint charging the company with unlawful and deceptive business practices in its “servicing” of residential mortgage loans nationwide. Litton services more than 270,000 single-family residential loans of approximately $33 billion in value.

The suit was filed in Federal court in Los Angeles, California. Lieff Cabraser Heimann & Bernstein, LLP, and co-counsel, represent the plaintiffs.

Summary of Allegations Against Litton

The complaint alleges that Litton has engaged in a scheme by which it fails to accurately service its borrowers’ loans, including misapplying or failing to apply payments made. Litton refuses to correct these mistakes and uses the borrowers’ alleged default as a basis for charging the borrowers late fees and other unwarranted fees, and for threatening or attempting foreclosure. Litton also charges unwarranted fees for hazard insurance on property that is properly insured.

The components of this alleged scheme include the uniform and common tactics of:

misapplying or failing to credit payments received in a timely fashion;
charging unwarranted fees;
failing to provide customers with timely or clear information about the timing and amount of payments owed;
prematurely referring accounts to collections and threatening or attempting foreclosure, regardless of legal and/or contractual grace periods; and
charging customers premiums for hazard insurance on property that is already insured.

Contact Lieff Cabraser

We appreciate receiving information on your experiences with Litton. Click here to contact our firm. However, Lieff Cabraser can not serve as your counsel in any matter unless you and our firm expressly agree in writing that we serve as your attorney. Please read the Statute of Limitations Notice below.
As part of our long standing objective of advancing consumer rights, we are spearheading litigation intended to halt alleged illegal and deceptive business practices -- often targeted at persons of low income or having poor credit histories -- by several of the nation's top credit card and mortgage loan servicing companies.

About Lieff Cabraser

Since our founding thirty years ago, Lieff Cabraser Heimann & Bernstein, LLP, has been committed to redress corporate misconduct, to achieve justice for investors, consumers, employees, to promote safe products, and to protect our environment and the human rights of citizens worldwide. As part of our long standing objective of advancing consumer rights, we are spearheading litigation intended to halt alleged illegal and deceptive business practices -- often targeted at persons of low income or having poor credit histories -- by credit card and mortgage loan servicing companies.

Statute of Limitations and Trademark Notice

You should be aware that the Statute of Limitations (the deadline imposed by law within which you may bring a lawsuit) may severely limit the time remaining for you to file any potential claims you may have.
N  21st of Apr, 2007 by    0 Votes
Litton loan has used mental terrorism on my wife and me i'm losing my home after 23 years when thy bought the loan from option 1 its been a nightmare thy give you the runaround tell its to late to do any thing knowing we can not fight them i'm struggling to find a place to live close to work. Need to keep going for my family. Its sad that litton loan needs not answer to nobody. Thy seemed to have more power then the government. When you work hard an honestly trying to stay on top of all expensive's which is not easy these days. Thin litton says get out now you haven't moved yet [even before any legal action was done ] i have a good job but now under pressure to work and look for a place and dreading coming home and seeing my wife and kid locked out of the house. This is not good for me, you the country.more homeless families is not healthy [i might be one soon ] god bless america
A  30th of Apr, 2007 by    0 Votes
The way I've been treated and the time it took to get extra monies (almost $8,000.00) out of there phoney
special accounts gives them the title hands down.

THE LOWER THAN SNAKE POO IN A SINK HOLE AWARD!!
A  9th of May, 2007 by    0 Votes
I am having exactly the same problems. They have charged escrow fees for insurance when I pay for my insurance. After we sent a proof of insurance they claim " months later" to not have any proof. How ever they messed up.. They sent me a letter stating that they had received it when it was first sent out. When told about this the "Service Rep." asked me to fax it to him. When I asked, " you guys sent it to me don't you have a copy?" His reply was, "what is the matter? Faxing it to hard for you to do?" Now I have noticed that since I started fighting them on this my "online payment history" now says that it's not available. I emailed them and asked why I couldn't get to my payment history are they trying to rewrite it. They answered, "A number of payment reversals had to be processed on your account. This prevents you from being able to view your Detail Transaction History for a period of 12 months." What a riot... THEY ARE REWRITING IT TO COVER UP THEIR MISTAKES.
A  20th of May, 2007 by    +1 Votes
Litton Loan has become our recent nightmare. They really do seem stronger then the government... We need help to stop this company and now! They should be funding the homeless shelters as they are putting people in the streets. We can not seem to even make a payment. They do not want to post payments they want to foreclose. FRUSTRATING and very scary that our government lets this company even exist!
A  22nd of May, 2007 by    +1 Votes
This company is ruining many households. We have paid our mortgage on time for 3 years and for three years they now tell us that we have been behind three months for three years. This is amazing! Everyone should read the article in the Houston Press May17-23rd, 2007 issue. Mr. Litton says that he sleeps well at night! And, so he should he is rich from all the misapplied payments that continue in company.
A  5th of Jul, 2007 by    +1 Votes
I have not seen a more incompetent people as they are. We have tried calling them and we wait on the phone for 10 minutes for a live person to come to the phone. Or we get a recording saying that they will call back but they never do. We were 3 months behind because my husband got hurt at work. We called them and all we got was an answering machine saying they would call back. I sent them a check for half the amt and the check got sent back. We went to the housing authority in our county and she's tried calling them and gets no answer back either.
A  6th of Jul, 2007 by    +1 Votes
I agree and have gone through the same experience with this company. I had to file bankruptcy in order to try and keep my home. They are modern day loan sharks and something needs to be done. How many other people have been made homeless because of their tactics. I was one of the lucky ones who found a way to stop the foreclosure. Not the best way but I had to do it in order to keep a roof over my sons head. If it wasn't for them I would have never had to file bankruptcy and would be able to afford a reliable car to get back and forth to work. Instead, I pray to god every day that my car holds up. I have already replace the engine once with money I could not afford to use for the engine at that time. It still haunts me every day what they have and still continue to put me through.
A  9th of Jul, 2007 by    +1 Votes
The same thing happened to me with - but it was with Escrow. They wanted me to pay for taxes that I paid in January. Because they also paid - they started increasing my payments and when I refused to pay my taxes again to them - they reported my payment as late to the credit bureau. I can not find anyone who will refinance me because of this.
A  14th of Jul, 2007 by    +1 Votes
The same thing happened to me. I have made every payment on time, sometimes early, paid additional amounts which is lost in their black hole. If the payment gets there before the first of the month, they credit to the previous month and show no payment for the current month, yet they don't show where they credited the "extra" payment for the previous month and show us late for the current month. We have been in this hell for 6 or 7 years now. Every time we pay what they demand, they can't show where that money went, and then a few months later their harassment starts all over again and they don't seem to have any record of those extra payments we've made. We've tried refinancing, but they've ruined our credit. About six months ago, we got a notice that they were lowering our payments and actually refunded an "overpayment" and i thought things were finally getting worked out, but now they have started the threatening phone calls again. How can we be behind when six months ago we paid too much, and we have not missed or been late since then???
A  26th of Jul, 2007 by    +1 Votes
I have been dealing with Litton Loan for 4 years, during that time we have been charged for insurance when we have already had insurance just to get the run around everytime I call and tell them I have sent proof numerous times, I even had letters from them saying they received proof of our insurance and they still give me the run around. They raised our payment from 606.85 to 1075.00 without our knowledge then sent a notice if we didn't pay the huge amount they want, they will foreclose, when I questioned them about sending notice, they said they didn't have to, now they are saying we have not made payments for 3 months even though I have a paper trail, I send everything certified with return receipt, print out a copy of the cashed check and keep copies of all contact with them, they have added late fees and many unknown fees to negative equity and refuse to send me a break down of what they are charging us with. Even with all this proof that our payments have been made, they have still reported to the credit bureaus that we have not paid and we cannot even refinance to get away from these thieves!!! We have been paying for 4 years and it is kinda funny, the pay off is greater than the amount first financed!!! How can that be???
A  29th of Jul, 2007 by    +1 Votes
I am concerned now. We have had our loan since 1997. My husband is getting ready to retire from the military and I have started planning the sell of our home, etc. I have just requested a transaction history from this company because my balance doesn't seem right. We have consistently paid two months in advance and have also made several "principal only" payments throughout the years. It just seems that our balance should be much lower, especially since we only have five years left on the original loan! I guess I don't have a true complaint yet but I am so worried that this sort of thing has been happening!
A  26th of Sep, 2007 by    0 Votes
Litton is the worst mortgage company on the planet. I sent them an extra payment to be applied to the principal of the loan. Rather than applying the amount to the principal, they created a 'forbearance account' to cover fees. When I asked the village idiot that answered the phone, I was told it was to cover my extra fees. When I told the ### that there were no fees due, she told me that I would have to write a letter to have them release my extra payment. I stopped that in it's tracks by reciting the law about misappropriation of funds but still had to fax a demand to Litton for the funds to be released and correctly applied. I've been trying to pay these clowns off for a month and I have received different demands for different documents or they will not accept a cashier's check for the full amount. The latest laugh is they want me to get title insurance on the property they are financing and open an escrow account to pay off my own house with my own money.

BTW - spoke with an escrow company this morning and even an escrow company cannot get a payoff. I'm going to retain an attorney and go to the California AG. Avoid Option One as they are a conduit for Litton.
A  18th of Oct, 2007 by    0 Votes
How does one start a class action lawsuit in California against Option One the true predators of the jungle.
A  5th of Dec, 2007 by    0 Votes
I took up this loan with litton loan back in 2005, was told that I would have 60 days to make my first payment being that the loan was transfered over, I receive a notice in the mail saying that my loan is in collections due to a non payment, called litton collections department they stated that I had a payment due, when I told them about the 60 days grace period they stated that I have been misinformed that I have to pay or they will report me to the credit bureau and slapped me with a late charge, not only that now my payments have been adjusted, talked to a rep who said that my payments wouldn't go up till 2010 to find out that my payments jumped up from 1,700 to 22,00 after they said it wouldn't happen. This company has been nothing but a nightmare, unprofessional, poor customer relations skills...I just read that there is a class act law suit that is in effect, which I can say I do qualify for being that the same thing happened to us back in 2005. I contacted litton today on 12/05/2007 in regards to them raising my rate, requested some type of hardship program being that I'm having such a hard time coming up with this huge amount, littons reps informed me that they can't defer any payments, that all they have is a modification program which I will still have to make my payments because it takes 60 days to process the paper work, the rep terrance informed me that there are too many applicants trying to get assistance do to their mortgage rates being raised, I still have to make payments on time while they review this mean while I'm in hardship..This doesn't make any sense..Does any one have the same issue with litton as far as them lieing to us,the customer? misinforming us, rates being adjusted when they state it wont happen? poor customer relations communication? If anyone has any information on what I should or could do in regards to reporting this companies fraudulent acts? would appreciate any help I can get...
A  18th of Dec, 2007 by    0 Votes
I feel sorry for you folks who have loans with these barracudas! I don't even have a loan with them and I can't get them off my back! I had the misfortune of inheriting the phone number of someone who does/did have a loan with them. I told them, twice, that this is not the number of the person for whom they're looking and that it may have been his number at one time, but it's my number now and stop calling. I understand that they have people who try to skip out on loans all the time, but I'm telling the truth! They asked me my name, I told them it was none of their business - and it's not- and to stop calling me. They continue to call, so I reported them to the attorney general's office of the state of Texas. I hope they'll get them off my back! My sympathies to you folks who have loans with them!
A  18th of Jan, 2008 by    0 Votes
Our Loan was sold by CountryWide in 2005 to Litton. We were on a repayment plan that we were current. Litton sent us a paymnet coupon for the same amount and we responded as normal paying our payment ON TIME! A few and calls . We tried to call them and explain the situation and no one responded to help us. We fianlly got an attorney here in Texas who sent them letter to cease the threatening letters. They never stopped. We have never missed one payment on our agreement . Last week we were sent a notice that our home was in forclosure and would be auctioned off on 2/5/08. We panicked. Howevefr for the first time we were able to talk to a real person who looked at our account and took us out of forclosure. They are still raing our interest rates and chargin ungodly late charges and forbearance fees. We are at our witts end and feel like bankruptcy may be our only options. We are not able to refi because they are reporting our payment late every month. This has been an emotional upheaval as we are not able to come to any solution. your help would be appreciated and are we able to take part in the class action lawsuit.
A  20th of Feb, 2008 by    0 Votes
It's now Febuary 20 and where, dear Litton Loan is our form 1098(mortgage interest statement)Also please get people to answer your phones who can speak english. Poor Litton Loan, with the class action, they like Countrywide are coming crashing down!
A  26th of Mar, 2008 by    0 Votes
I agree with all remarks above. They are trying to take my home and I am not even behind on payments. They say I am. I have contacked the Ohio Attorney General's office and they are worthless. I am now trying to get in contact with Michael "Sicko" (Movie about our health care system(. Maybe he can do a movie just on Litton and how our government officials are just in there for themselves and not the one's who voted on them. They need all replaced and we the people need to fight back. Litton Loan has forclosed on many loans by greed and illegal practices. It is time we close them down. I am never going to give up and we will prevail even if we have to take down the whole government.
A  14th of Apr, 2008 by    0 Votes
Litton Loan Servicing repeatedly places lender placed insurance even though I pay my own taxes and insurance. What they do is take my mortgage payment and place it in the so-called escrow account which in turn makes me late in my mortgage payment, they add fees and report me to credit bureaus. Thus, I am not able to refinance to get away from them. I now sent my payment via western union. By the way they do reimburse me the extra money they collect from me but do not correct my credit report. My credit is ruined.

Post your Comment

Please check text spelling before submitting a comment
Your attitude towards Complaint Agree Neutral Disagree
Comment text
Attach photos (optional)

Contact Us
bdomains.com
     

Reply to

Send