topic Re: Is Litton Loan Servicing an collection company? in Rebuilding Your Credit

Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 04:01:45 GMT

Is Litton Loan Servicing a collection company or a mortgage company? I had a loan from them for the down payment of my house (an 80/20 loan). the 80 loan fully foreclosed on me, but the 20 loan (litton loan) just wrote off as bad debt and is willing to settle for $5K on $36K loan. Now mind you the OC was AMC, but both loan were sold to 6 diff banks between the two loans. should i settle and ask to remove, or try a DV to see if i get them that way?

Sorry to ramble, but i know you cannt remove accurate info but since the loan was sold so much,maybe i can find undotted i or an uncrossed t.

thanks for your help.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 07:01:23 GMT

I had a second mortgage 15 yrs ago underwritten by Litton Loan Servicing. So, I do not beleive they are a collection agency. However, it was not reported on my credit report as a mortgage. I think it fell into the same catagory as a HELOC. It was long ago when I paid it off and my memory is shaky on that point.

As for your other questions I cannot help, but I am sure there are other members here who can.

Message Edited by plasticman on 08-09-2009 11:31 PM

Note: after looking at their website just now it appears they are trying to collect a bad debt on their own underwriting in house.

Message Edited by plasticman on 08-09-2009 11:57 PM

Message Edited by plasticman on 08-10-2009 12:01 AM

Re: Is Litton Loan Servicing an collection company?

RobertEG — Mon, 10 Aug 2009 08:30:25 GMT

If they are a CA, they must, under FDCPA 809(a), send you a written "dunning notice" within five days of posting to you CR.

That should tell you their status.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 12:26:27 GMT

How do i get a dunning notice? i called them a number of times until i was offered the payoff. litton loan doesnt contact me at all phone or wiritten. In fact when i do try to get ahold of them via phone it takes days to weeks to get someone on the phone.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 17:03:47 GMT

They service mortgage loans...mostly sub prime, and fit the definition of predatory lender.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 17:18:21 GMT

@Anonymous wrote:
They service mortgage loans...mostly sub prime, and fit the definition of predatory lender.

Many years ago when I had a loan from them when I place a call to Litton Loan Servicing a couple of times the first recording I would hear was something to the effect that... be advised anything you say is recorded and may be used against you in any collection efforts.

I did not worry much because I was never late. However I did think it was odd at the time.

Be very careful what you say if you chose to call them.IMHO

Re: Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 19:02:23 GMT

+1 on the predatory lender

Our mortgage is with Litton Loan. They are poorly behaved and have a few class action suits filed against them. We have recently had better luck contacting them via phone. Their statements had so many undocumented fees and so much misleading information, that we had to ask them to go over our entire account and, after a first perfunctory look and our second request, they were able to come up with something somewhat satisfactory. But they also pulled their reports from two of the three CRA's. We now look like we don't have a mortgage....

We are glad to be refinancing to be rid of them. Our mortgage was sold to them - I think the second time round. They are a royal pain.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 20:49:35 GMT

how did you get them to pull thier acct from your CRA;s? should i send them a dv letter or just call and ask for a debt verification?

i also have a foreclosure from citiresidential and i found out they are no longer in business, do you think a dv letter to them would help remove them from my CRA's since they wouldnt be able to answer?

Thanks you for the help.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Mon, 10 Aug 2009 21:56:07 GMT

@Anonymous wrote:
how did you get them to pull thier acct from your CRA;s? should i send them a dv letter or just call and ask for a debt verification?
i also have a foreclosure from citiresidential and i found out they are no longer in business, do you think a dv letter to them would help remove them from my CRA's since they wouldnt be able to answer?

Thanks you for the help.

We didn't request anything but a review of our account - which they seem to have totally messed up. Don't understand why they pulled the account info from the CRA's - it's a win/lose situation. We are losing the account age (7 years) as well as not having our mortgage report in our mix. We weren't really looking for that. But then again, it has its plusses. We had a hard time getting documentation from them several years back (documentation which they required but wouldn't send to us - unbelievable) and it caused us to have some lates reporting - which are now absent.

I'll be anxious to hear what others have to say about your dv questions - have not done that.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Wed, 19 Aug 2009 15:36:44 GMT

Hello again...I did some investigating b/c I heard Litton went out of business. Well they didnt and I found out that they sold my acct to a collector called Byck O'neal on (12/22/08). Can you offer any advice on what I should do? Do I have the right to attempt to remove Litton since they are no longer the holder of my foreclosed mortgage? Litton held 20% of my mortgage loan, but comment it on the CRs as mortgage loan sent to collections. When I had no other choice but to FC Litton wouldnt accept a deed in lieu. So here i am.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Wed, 19 Aug 2009 15:37:43 GMT

what is a preditory lender?

Re: Is Litton Loan Servicing an collection company?

Anonymous — Thu, 20 Aug 2009 22:22:45 GMT

The way litton loan operates:

Litton targets delinquent mortgages or simply those who may be falling on hard times. they restrucyure your loan (usually without telling you). once you start making payments, they delay cashing the checks until after the due date which then allows them to charge late fees. there is NO WAY to get ahead with them. They WILL do their best to keep you in a sub prime standing. You are a cash cow for them.

As a company Litton groups huge bundles of these sub prime mortgages together and sells them as investments known as REIT's. Real estate investment trusts. These investors basically make money on your misfortune.

Litton uses a company named CBASS based out of NYC to handle the reit's.

We can thank our own government for these predatory lenders running wild. Back in the mid to late 90's HUD sold off all of their mortgages that were "special attention" (those falling behind and so forth). They sold them all to a company that was based in Conn (forget the name), unfortunatley this company was under investigation by the SEC, and when hud found out, they forced the Conn company to liquidate the mortgages. Litton was a BIG buyer.

IMHO...just do whatever it takes to get away from Litton.

Re: Is Litton Loan Servicing an collection company?

Anonymous — Fri, 21 Aug 2009 03:08:20 GMT

Finally a straight answer...thank you! Litton Loan hasnt had my acct since Dec 08, Im going to try and DV them and see if I get lucky. I said in a recent post that they sold to Byck Oneal but that new company hasnt reported my CRs yet. LL offered a settlement but I was told once the first mortgage forecloses then the second mortgage is out of luck...Feel free to say if Im wrong.