It’s no wonder Goldman Sachs is having trouble trying to sell its mortgage servicing unit, Litton Loan.The allegations against the unit are absolutely horrific– from not returning calls for six months to charging clients for insurance they don’t need and even locking people out of their house and robbing them, they are lawsuits waiting to happen.
Analysts expect the lawsuits to surface as the complaints about the mortgage operation are numerous and keep popping up.
Goldman acquired the company in 2007 for $470 million. Good luck with the sale.
The client received a note on Dec.9, 2010 from Litton stating that they needed more paperwork and no foreclosure sale would be conducted and they would not lose their home during the 30-day review period.
When the client went to his house 10 days later he found Litton had changed the locks on the back door, posted signs on the sinks and toilets that said the property has been winterized and phone numbers for other loan offices.
The client received a call from a contractor who had been ordered by Litton to lock the home on Dec.8.
One of the loan offices on the post said they no longer worked with Litton and the company was illegally using their names on winterization notices.
'This type of treatment is very disturbing that they break in my home, take my things then post notes for help sending me to another lender? Something must be done,' the client wrote in a complaint.
The client said he received a 'letter from Litton stating they had charged my account with $6,535.27 for insurance which I already have.' The client's insurance agent tried numerous ways to show them proof of policy for six months and received no response.
At the end of six months the client received an $809 property tax fee which the client had already paid. The client got no response to repeated faxes, emails and messages.
The client had been talking with a Litton officer everyday about getting his loan refinanced and thought everything was fine. Then one day he received a foreclosure notice from Litton and then he received a letter from the Litton modification office stating that his mortgage mod was still pending.
After a call with Litton they said he had been declined on the mod and that he would have to speak to the attorney office. He agreed to pay $1300 a month on a repayment plan on the promise that after a year he would be able to renegotiate his loan.
He said they are now holding his credit so he can't get an equity loan or refinance to pay them off. 'Litton has been trying to take my home from me since they bought it from another lender four years ago,' the client wrote.
The client's mortgage was sold to Litton in 2008. Litton paid the client's taxes in June that were not due until the end of July.
'Litton forced escrowed me in June. Forced escrow is when you are deliquenet in your taxes. I was not,' the client said.
When he tried to pay his taxes he was told they had been paid by Litton. He sent his July payment in but it was not posted to his account because he didn't include the dollar escrow amount and he was charged a late fee.
When he found out he had to reimburse Litton for his entire tax payment amd then they charged him late fees of $445.22.
The client entered the loan modification program in January 2010 and followed all of their instructions closely. Litton's instructions changed every couple of weeks which resulted in conflicting information for the client.
After the client decided to opt out of the mortgage modification program after four months, it took an extra three months and over 10 calls to get correct accounting on his records.
The client noted his loan was current when he entered the modification program and made all his trial period payments on time but Litton still reported him as five months late to all three credit bureaus despite the company's promise to report the loan as current.
'They destroyed my credit score. They have caused me sever financial harm and dishonored their stated agreement,' the client wrote.
The client made over 20 calls to Litton asking why their rep had denied them a loan. Litton did say it was their fault when they finally got on the phone with them but they wanted them to start the entire process over.
The client had to come up with almost $4,000 to keep their house.
'They deliberately tried to forclose on us after we followed their steps they denied us,' the client wrote.
The client applied for a loan modification in July 2009 and received papers in September that he was on trial for one.
He signed an agreement to pay a certain amount for the next three months until the decision was made.
In November he was denied the modification and told he had 30 days to pay off the balance and that if he didn't they would foreclose on the house.' If I had that kind of money I would not be asking for the loan to begin with! My mortgage was sold to Litton Loan Servicing without any consent from me,' the client wrote.
The client has not been able to get his loan modification for months because Litton will say he didn't check a certain box or didn't send his bank statements even though his bank has proof that he sent all his statements.
'Litton Loan lies. Quit coming up with excuses every time I call,' the client wrote.
The clients qualified for a loan modification after months of back and forth with Litton. Litton then referred them to an office in Georgia.
Litton did not send the requested papers to the new office and never told the clients about notices they received from the Georgia office.
The clients received a letter from an attorney in Georgia denying them a loan because they were missing paperwork. 'Isnt' it funny that we qualified at Litton but did not qualify for a loan because of them losing paperwork,' a client wrote.
The client has been continually denied for a loan modification and ask for more documents every time he sends the requested documents to them.
He said the representatives give inaccurate, inconsistent information and do not listen to their customers.
'One of their representatives actually laughed at my situation. They also told me they do not consider medical emergencies and expenses when reviewing a loan modification request,' the client said.