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Litton Loan Servicing LLP - A Short Sale Nightmare!

By Carmen A Jones

Real Estate Agent with eXp Realty 0672843

May 13, 2008 02:25 AM

UPDATE!!!! JUNE 6, 2009

LITTON LOANS SHORT SALE DEPARTMENT IS SPECTACULAR NOW! I JUST WANTED PEOPLE TO KNOW THAT. MY ORIGINAL COMMENTS ARE OVER A YEAR OLD AND THEY CHANGED THEIR DEPARTMENT DRASTICALLY SINCE THEN. HAVE NO COMPLAINTS AT ALL! Carmen

I just needed to vent this morning about the worst short sale/Loss mititgation department in history! LITTON LOAN SERVICING LLP.

I have sent Litton Loan 3 Short Sale files. One is over 145 days old, the other is over 90 days old and a brand new one I just sent a week ago.

The first loan has been nothing but a nightmare. No calls returned and I only get voice mail all the time. I noticed that each loan number I punch in just goes directly to whoever the file has been assigned to and all I get is there voice mail. As of today, It is still being processed and supposedly in the hands of the Investor for approval. 4 months!!!! The contract expires May 14th, tomorrow and the buyers are backing out! I bet the approval will come in the day after tomorrow when the buyer is gone!

The second I was told is too low. That's it. Too low! They never ordered BPO. No sales in the subdivision in a year and a half and that one was for $287K.. Our Offer $275K!.. They asked for the Authorization 10 times. Every time I called, they could not talk to me because they cannot see the authorization on file! Ridiculous! The only helpful person was someone named Myreen, (who saw the frustrating in my fax) who is in a totally different department that went out of her way to confirm that they received the short sale offer and the authorization and it was hand delivered to the Loss Mitigation Department!

The third, Faxed on April 28th, I called the 1st, and all they say is Too Low and to send new package! No negotiating, no bargaining, no talking to anyone!

Ridiculous and Frustrating! They don't know what they are doing there. No protocol, no procedures, nothing! Just inexperienced idiots! I'm not wasting one more minute on any of these files! It's useless!

Ugghhhhh!!!!

Update:

Imagine this.. July 2nd and still no Short Sale Approval on my first file with Litton Loan. I got the buyers to extend the contract until July 15th, (mind you this offer was sent to Litton Loan back in January), and they still won't budge. It took the negotiator 5 months to even speak to me and when he did he told me make changes to the HUD and re-fax; that was 3 weeks ago and still no response. I am netting them $136,000 and they insist they want $142K... when the borrower only owes $153,000. New comps of $69k and $72K closed this month. They will not order a second opinion BPO even though the file is 6 months old. They are ridiculous. And even worse.. the 2nd lienholder HSBC wants to Settle for $11,000 out of a $41,000 loan instead of Approving the short sale at $2,500 which is what Litton loan is offering them, not one penny more. What a joke!

On my other file, well lets just say they are playing games now. We sent the offer and the said it was too low, the buyer went up $10K. When we sent it they said it was close but not close enough.. we increased it another $10K and guess what? They repeat the same words.. You're close but not close enough, send another offer. One unit closed this month for $138,900 (not even a foreclosure or short sale), another pending for $155K.. Our offer is $150K. Buyer will not go up anymore and Litton wont say what they want. It feels like such a waste of time an energy!

The 3rd file is suffering the same fate as the other two. I sent them 5 comps showing closed sales for the month of June and they are all under $275K. Our offer is for $275,000. They want market value but are ignoring the fact that the values continue to drop in the building and wont do another BPO even though the file is 3 months old. The buyer will not go up and is considering making an offer on another unit priced at $225K. He's giving me another 30 days but Litton wont budge.

Why Litton Loan would want any of these properties, is beyond me! It makes absolutely no financial sense to nit pick over $2-3K diference in negotiations when it will cost them 20 times that in a foreclosure proceedings, property upkeep, condo maintenance fees, taxes, insurance, etc. Makes no sense at all.

Frustrating!

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Don Fabrizio-Garcia

Fab Real Estate - Danbury, CT

Owner/Broker/Trainer - Fab Real Estate

Carmen - the banks are not negotiating the offers. That is our job as the agent. Then, we submit the highest and best offer. Offers have to be reasonably within fair market value, otherwise they will be rejected - it will then make more financial sense for the lender to foreclose.

Litton usually already has a BPO on file, so they already have an idea of fair market value.

May 13, 2008 04:36 AM

Anon - You usually cannot set a closing date until the lender has approved the offer. I set them for either 30 or 60 days after acceptance.

It is typical to wait 4-6 weeks before the bank will approve or reject an offer. However, it now seems to have grown to 6-8 weeks. I've had offers approved by the lender within 3 days, and I've also waited 4+ months (that one was an unusual situation, and we're still working on it)

If you've waited 90 days, something must be up. Did the listing agent submit all the sellers' financials? Was paperwork missing? The complete short sale package must be submitted with the offer, otherwise you just go back to the bottom of the pile.

May 14, 2008 11:32 PM

If you're not gaining cooperation from the listing agent, then it may be wise to look elsewhere.

If the listing agent doesn't have everything in order (financials and the complete short sale package) then the deal will not happen. It's not necessarily the fault of the loan servicer if they do not receive the complete short sale package.

Short sales will not happen if the listing agent and home owner do not fully cooperate and do things correctly.

May 15, 2008 02:30 AM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Things have changed some with Litton since this blog post was originally written. We do many Litton Loans Short Sales, and they have a pretty fast approval time and are gererally easy to deal with. Compared to many of the other lenders around they are pretty good in my opinion!

May 16, 2009 05:57 PM

90 days and 120 day turn around times?? Who in the world are you guys dealing with. Seriously. I noticed from one of the buyers above that they were definately not working with an experienced short sale realtor. I have closed four that I can think of with litton in the last six months, and the average is probably five weeks for approval.

May 16, 2009 05:59 PM

They have definately improved in the last year! We do tons of Litton Loans Short Sales and they have a very fast responce time, and are very fair with their negotiations. Their negotiators are also experienced as well.

May 20, 2009 05:16 AM

Usually our short sales with Litton go pretty smoothly. They tend to have one of the fastest approval times in the industry of around 4-5 weeks or so. Knowledgable staff of negotiators as well. If you think Litton is bad, you likely have not done much with bank of America or Chase yet! While there are some bad negotiators at Litton, most are on the ball with stuff.

Nov 18, 2009 08:00 AM

Angie Stephens

Coldwell Banker Apex, REALTORS® - Wylie, TX

Collin County TX Specialist

I must be dealing with the old Litton employees, Carmen. I'm at 143 days, and the only response I'm getting is the runaround. Every time I speak to a representative, they tell me something different. My new favorite is "the authorization has expired." They try saying this every time, and tonight I had one rep at one phone number tell me to call back by seven with the borrower on conference call to get a one-time update until something in writing arrives. I couldn't reach my client, who had sent another authorization and it is not expired. She read to me the first half of the authorization letter which (she said) had been received August 12 but did not have my name on it. I wrote it. My client signed it. When I was able to reach my client and conference the lady, the person who answered the phone said that nobody worked there with her name (I asked for the previous representative). He claimed that no authorization was received on August 12 and that I couldn't have any information, and that the number I called was NOT loss mitigation (it was), and that the loss mitigation office was closed. He initially refused to let me speak to a manager. Finally, he said OK and put us on hold and just left us (forever). We hung up, verified that his number was the same as the one we'd called to speak with the first rep, it WAS loss mitigation, and a machine answered and told us to call back during regular hours (this was at 6:something PM CST). Then, the recorded OGM read off their regular hours, which was actually 8pm tonight. This is a game to them. They are having fun not having to answer to anyone. The clients have no recourse.

Oct 13, 2010 05:56 PM

Litton Loan Servicing LLP - A Short Sale Nightmare!

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Carmen A Jones

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