Getting Your Litton Loan Modified to Avoid Foreclosure

Litton Loan Loan Modification

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Litton Loan Servicing out of Houston, Texas, is a loan servicing company that works on behalf of mortgage finance lenders.  With over $60 billion in loans serviced at Litton Loan, it is possible that you may have a loan serviced by Litton Loan as well.  Particularly, they service subprime or troubled mortgages and their specialty is keeping them and borrowers on track.  If you are behind on your mortgage payments is it possible to receive a loan modification in order to get back on track and lower your monthly payments?

 

Keep Paying Your Mortgage

 

One secret to falling behind on your mortgage payment is to continue paying your monthly mortgage.  If you are having financial trouble, such as job loss or expensive medical bills, pay what you can on your mortgage.  Even if your mortgage payments increased due to an interest jump in an adjustable rate mortgage (ARM), continue to pay your previous loan amount.  What many homeowners do not realize is that the longer they forego payments, the higher the arrears accumulate, and, each month of late payments shows up on their credit scores, further preventing a possible refinance with another company.

 

By paying what you can on your mortgage you minimally show the mortgage servicer, such as Litton Loan, that you are committed to keeping your loan in place and they will be more willing to work with you as well.

 

You Must Qualify For Loan Modification

 

If your loan has become unaffordable and you must get lower payments in order to survive, ask your loan servicing representative at Litton Loan for details on a loan modification.  If you are having financial difficulty and are behind on your mortgage payments, they should be willing to work with you to make an adjustment in order to avoid an expensive foreclosure. 

 

However, you must play by their game.  They will have a plethora of paperwork that you must complete, and you must submit other documentation such as your income verification and tax returns.  All this documentation is for their underwriting purposes and helps them determine what mortgage payment you can afford.  With a target mortgage payment determined, you can then begin negotiations about how to lower your payment.

 

What Terms Can Be Modified?

 

Almost any loan item can be modified, including:

 

• Interest rate
• Amortization
• Balloon payment
• Principal balance reduction
• Term or span of the loan
• And more…

 

What you need to understand is that the lender who holds your promissory note will want the largest interest rate possible, giving them the highest monetary return.  You need to be familiar with these mortgage terms and be able to convince them that you can only afford so much.  If they want to avoid the expense and hassle of foreclosure they must be willing to bend on some issues. 

 

Litton Loan Servicing has noted that they perform over 1,000 loan modifications per year.  With those kinds of numbers they are well-versed in providing options for borrowers in trouble.  Success stories prove that tens of thousands can be reduced from a principal balance, interest rates can be lowered, and arrearages can be forgiven.  Just remember that if you want a successful mortgage modification you need to educate yourself about mortgage terms and talk straight and honest to your loan servicer.

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