A VICTIM OF LITTON LOAN & GOLDMAN SACHS DECEPTIVE PRACTICES

Predatory practices prevents small business’ ability to create new jobs & forces owner into unemployment

This is a summary of deceptive practices by Litton Loan Services, resulting in the mortgagee’s loss of major contracts held by her company, a key job offer being rescinded, job offers being withheld, stress causing severe health challenges and more.

WILLIAMS DISCLOSES CHALLENGES AND REQUESTS MODIFICATION FROM LITTON LOAN

After receiving a mortgage modification from her secondary mortgage provider, Ms. Williams approached Litton Loan to seek a modification. She had conversations with several Litton representatives. Since Litton had corrected an error on her account in 2008, Ms. Williams believed they would honor their commitment. In good faith, she disclosed her personal and financial challenges in the expectation that Litton would include her mortgage in the Presidential Foreclosure Program. Ms. Williams qualified for, and submitted all information requested on February 25, 2009 (modification submitted & confirmed on Feb. 25, 2009 at 3:12 PM – Litton recorded submittal on April 22, 2009).

WILLIAMS EXERTS HERCULEAN EFFORT TO INCREASE INCOME AND FORECLOSURE

In response to a suggestion by Marie Bernard of Litton (on 9/17/09 at 3:41pm), Williams wrote to explain why Litton should accept and honor the Loan Modification agreement this firm proposed and Williams accepted. Litton was reminded that Williams had:

• Responded to an inordinate number of duplicative requests for financial, operational, administrative and other information
• made all required payments of first modification (July, August & September)
• made all required payments of second modification (October, November, December)
• made all require payments of third modification (January, February, March)
• provided all information requested (received by Litton 3/29/09) copy attached, 48 pages
• been self-employed since 1993 – long before the original mortgage was instituted
• rented rooms to provide more income – sufficient in itself to cover both mortgages
• sufficient income right now to pay Federal HAMP mortgage, my second mortgage as well as my basic living expenses
• presented budgets that clearly demonstrate my ability to meet mortgages and basic financial obligations
• a preliminary offer from the U.S. Dept. of Homeland Security which will further increase my income

Documentation submitted showed rental income and more. The offer letter from FEMA was also attached.

LITTON LOAN BAIT AND SWITCH

Since Litton told Ms. Williams that the modification should be completed in 45 days (April 11^th), she began calling Litton representatives designated to work on her account after 30 days. Ms. Williams was told that Litton was still waiting for the Presidential Program to be released and she should not worry. As time went by, Ms. Williams expressed her concern over continuing payments that were almost triple what she would pay under the Presidential Program. On April 9, 2009, Nick Valdecaras of Litton Loan advised Ms. Williams that she should suspend payments until the modification was completed. One representative told Ms. Williams that if the Presidential Program was not released by June, Litton would offer a comparable modification program. She was assured that she would receive a lower interest rate and payment, allowing her to resume payments that fit into her revised budget.

To her chagrin, Ms. Williams learned on August 1, 2009 that Litton’s modification included rates and terms that were not very different than her existing mortgage. To make matters worse, she was served on July 27, 2009, placing her in jeopardy of losing her home.

ENOUGH WAS ENOUGH: WILLIAMS FILES COMPLAINT WITH NJ COURT

Williams had been through enough. Her health, financial and income challenges were well documented and shared with Litton. Recognizing her vulnerability, Litton took steps to exploit it. Williams has filed a complaint with NJ Superior Court against Litton Loan and its parent company, Goldman Sachs. She is in the process of going through the judicial process so that a trial date may be scheduled.

C:\CriticalFiles\CURRENT_Post2010\Veronica Williams\PrePaid_Legal\Case_LittonLoan\WhatHappened.doc

A PATTERN OF DECEIT
Nov. 2008	VW Requests Modification in Nov. 2008
Feb. 2009	Formal request in writing Feb. 2009
March 2009	Litton said wait
May 2009	Litton offer written modification, from them not from Federal program as indicated
June 2009	Litton tells me modification will be forthcoming so I paid non-secured debt to position myself for improved credit rating
July 2009	Litton serves me with foreclosure papers
Aug. 2009	Litton returns checks via US Mail while telling me that modification is underway
Sept 2009	Litton promises to delay while they work on approving modification
Sept. 1998	I sell another property at a loss to reduce debt for pending job
Fall 2009	Litton accepts checks sent a second time; issues a new modification with a higher monthly payment
Aug 09 – March 10	Litton accepts all payments, sent via FEDEX
Dec. 2009	Litton proceeds with court action to secure foreclosure
Jan 2010 – March 2010	Litton continues to accept payments that fulfill modification terms but does not remove foreclosure
February 2011	Williams fails security clearance
March 2010	Williams’ company loses GSA Schedule
April 2010	Litton issues new modification with yet another increase in the monthly payment
May 2010	US Dept. Homeland Security retracts job offer
May 2010	Williams’ steps up efforts to pack up home and move in tenants
July 2011	Williams’ knee gives out and she starts physical therapy
December 2010	Williams files complaint against Litton with NJ Court
April 2011	Williams undergoes major surgery (hip)
August 2011	Williams files motion to amend complaint with NJ Court
September 2011	Williams scheduled for major surgery (knee)

SOURCE: C:\CriticalFiles\CURRENT_Post2010\Carolyn_Separation\Mortgage\LittonRefi\Request_to_HSBC_6-2010\LittonLoanSummary_for_Attorney.doc

Some key documents include:

C:\CriticalFiles\CURRENT_Post2010\Veronica Williams\PrePaid_Legal\Case_LittonLoan\DKhawam\Complaint_Jul2011\VW FinalComplt_8-1-11_vw.pdf

C:\CriticalFiles\CURRENT_Post2010\Veronica Williams\PrePaid_Legal\Case_LittonLoan\NoticeToAll_Feb2011\VWilliamsVsLittonLoan.pdf

8/4/11 email:

Since I contacted the NJ Attorney General’s office, I have learned that HSBC “acts as a trustee for certain loan securitization trusts in connection with the issuance of mortgage backed securities”  (see VW_toHSBC_HSBC_Response.pdf, attached). I cannot confirm how HSBC’s actions contributed to Litton’s deception, however, trustees have been considered culpable in the mortgage crisis (see Caught in the Cross-fire: Securitization Trustees and Litigation During the Subprime Crisis).  It has been determined that trusts are not exempt from state laws (see NJ Attorney letter to Comptroller of the Currency).  It’s interesting that HSBC is forging onward with reducing its presence in the US and UK and moving its headquarters to Hong Kong.

Goldman Sachs is the parent company of Litton Loan, reported by many as having purchased it to realize substantial financial gains from foreclosing on properties of mortgage holders (see Goldman Sachs to Cash in Big Time With the Litton Loan Servicing Purchase). You may have noticed that Goldman is dumping Litton Loan (see Bloomberg article: Goldman Sachs Will Sell Litton Loan).  I have amended my complaint to include Goldman Sachs as a defendant along with Litton Loan Servicing (amended complaint attached, VW FinalComplt_8-1-11_vw.pdf ).

I have, therefore, replaced HSBC with Litton Loan on the survey (SurveyResponse.pdf, attached).

I want to help you ensure that these institutions stop their egregious actions and pay for their deceptive practices against others like myself.   I have extensive information documentation and will gladly share everything with you.  Since I have been unable to reach you by phone, I look forward to periodic updates on your investigation.

Thank you,

Veronica Williams

NJ Citizen, Homeowner, Victim of Deceptive Mortgage Practices

P.O. Box 978

South Orange, NJ  07079-0978

Phone   973-715-XXXX

Email     

Those which are not downloadable are available upon request. Just send an email to: LittonLoanVictim@OfficeThatWorks.com.