I have just went through the *** of Litton Loans and I can tell you why they dont provide the service you want.Theres more money in the foreclosure process than in resolving your modification. Thus they dont have a motivation to modifiy.
A loan is insured from the goverment so Litton can on foreclosure report the total of your loan as a insured loss basically a tax write off In addtion litton keeps whatever funds you paid them up to the default date On top of that litton gets to auction off the property at the local courthouse for cash regardless of the tax credit amount to settle the debt. Even with the lower values of your property litton will make 200% of the loan value with you in foreclosure as in my case I paid litton 75k on my home for a 275k loan went into foreclosure due to Job loss I spent 9 months and all my savings like a fool and in the end filed Chapter 7 for all their efforts litton gets the following 70k i paid plus interest a tax credit of my loan maturity 675k plus change and a sale of my home of 200k plus which is around 945k all told I got nothing plus a 3k lawyer bill and a ruined credit history. I am debt free due to bankruptcy and I will never buy a house again Why do you think the banks are reporting massive gains now especially Goldman Sachs (littons owner btw) Dont let them scare you they are not at risk nor are they motivated to modify your loan They will lose money if they do.They stand to double their money if they leave you hanging out to dry and youll get nothing in return
If you cant make payments File Chapter 7 and walk away rebuild your life and chalk it up as a life lesson
The goverment program doesnt change this one bit They have far more influence than the little guy and frankly many loopholes and lawyers to string you along. You can only trust yourself dont let others think for you.
Monetary Loss: $275.