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Litton Loan Servicing

Litton Loan Servicing review: Predatory loan practices 47

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12:00 am EDT
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This review was chosen algorithmically as the most valued customer feedback.

(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.

Update by Roy Denton
Apr 17, 2007 2:02 pm EDT

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.

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47 comments
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Ms. T S Johnson
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Jul 06, 2007 4:41 pm EDT

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.

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patricia hogan
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Jul 05, 2007 10:35 am EDT

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.

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Stacy Westmore
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May 22, 2007 11:17 am EDT

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.

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Jacqie Freund
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May 20, 2007 2:19 am EDT

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!

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David Brewton
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May 09, 2007 5:35 pm EDT

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.

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Paul Gerace
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Apr 30, 2007 12:44 am EDT

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!

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RJ
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Apr 21, 2007 7:16 am EDT

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

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