The Loan Modification Run-around; Wrecked Credit and Foreclosures

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Michelle McCloskey and Michele Cheverez both tried to get loan modifications with Litton Loan. And both were ignored or stalled until it was too late. Foreclosure proceedings began, leaving them with wrecked credit and the loss of homes they'd lived in for years. 

Mc Nelly Torres, a former investigative reporter for the South Florida Sun-Sentinel and  a member of the board of directors of the Investigative Reporters & Editors organization documents their stories in Foreclosure; Losing the American Dream.


McCloskey, 47, stopped paying her mortgage in February in the hopes that Litton would modify her loan to a payment she could afford.She tried to modify her $411,000 mortgage to lower the monthly payment after she lost income. But Litton Loan Servicing denied the application because she was not delinquent on her payments.

"They kept denying the application and didn't say why," McCloskey said, adding the value of the property is now about $150,000 lower than when she bought it. "I could never get anybody on the phone to answer my questions."  Read more:


For more homeowner and foreclosure victim stories see a few recent blogs here; 

Don't skip mortgage payments...

Foreclosure Victims continue to speak out

Mortgage Servicing Complaints Rise

Why we need Financial Reform

No lender wants to Foreclose -or do they?

A recent investigation by the Association Press pointed out that though mortgage servicing companies are perfectly positioned to help work with lenders/borrowers to bring homeowners better loan terms under the government's $50 billion mortgage reduction program -it's not happening. Read more here

Update February, 2010  Watch Video here: Homeowners not getting loan modifications. What lies between the excuses? 


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A memoir exposing the steep price consumers pay when facing mortgage servicing errors, inaccurate credit reporting, illegal debt collection practices, identity theft and weak consumer protection laws. THE BOOK » DENISE'S STORY »