I have been going through the loan modification process with my loan service provider (Litton Loan) for 2 1/2 years now. I started by being proactive as I knew my job position was slated to be cut and I had the opportunity to take an early retirement package so I did. I have an adjustable rate loan and I knew I would not be able to afford my payment once it adjusted and I was living on retirement salary. I was not behind on my payments and had good credit when I started the process in November of 2008. I really wanted a fixed rate loan, a set amount that I could count on with my fixed retirement salary. My loan documents have errors in them, the first page says it is a fixed rate loan and inside it says adjustable, my initial loan payment was $1,425.00 interest only, another error in loan docs, one page says in big letters $1,425.00 is the principal and interest, another page says it is interest only. After six months I was offered a trial modification payment of $875.00 which I paid for 5 months on time and then one week before I retired the sent me a new trial modification of $1,987.00 a month, more than double the previous trial modification payment and more than my original payment of $1,425.00. After I contacted them I found out that they had not calculated it on my verified retirement salary, which they had, but my working salary plus the 10,000 I had not even received yet for retiring early. I thought that they would correct their error so I paid the huge trial modification payment for nine months, once again all on time. However it depleted my savings, the money I had received for retiring early. I was then turned down for a HAMP modification by an error on their part and they offered me a in house loan modification. The loan modification that Litton has sent me is even higher than the last trial modification payment and higher than the original loan payment. If I agreed to this absurd agreement the payment would be $2,176.39 which is $192.26 higher the previous “Trial Loan Modification” payment of $1,984.13 and my new loan amount would be $288,996.00, which is $3,996.00 more than my original loan amount. What made it absurd is that they have verified my gross income as $3,493.71 and after taxes and insurance, my net income is $2,314.51 you can see, if I paid this new amount of $2,176.39, I would be left with $138.12 to pay my monthly bills: water, sewer, gas, PG&E, telephone, cable…etc, food and gasoline, insurance. I am sure that you see the impossibility of that. At their suggestion I reapplied for the HAMP modification and as of today I was once again turned down, I think I qualified but my lender did not want to reduce my loan to make it work. They once again said that they are looking at it to see if they can offer me an in house loan modification. Litton had destroyed my credit and says I am behind even though I made all payments on time. I am now behind on my payments, my saving is drained from making the huge trial payment they gave me, and I really don\’t know what to do next. I have all documents, emails and letters from the last 2 1/2 years. My payment will adjust on July 1,2011 to 1,836.26 and again on Jan. 1, 2012 which I don\’t believe is what my loan documents say.
