Help

[Joel Fraser]

We refinanced our loan with New Century to get out of a negative amitization loan. They told us they were putting us in a bandade loan and would refinance us again in three months but we would not have to do anything because our loan would just roll over. We were suppose to receive some equity back from the loan. When we received our paperwork to sign, the amounts were different; however, since we had the loan agent on the phone with us and he continued to say everything was okay, we signed the loan. Three months later nothing happened. We tried to contact New Century constantly with no avail. Finally we received a notice in the mail stating New Century had filed bankruptcy and our loan had been transferred to Avelo Mortgage. We got behind in our loan with Avelo around March 2008. We basically was one payment behind. Our taxes and insurance is also in our loan payment and should be taken out each month. We were constantly talking to Avelo to try to get our mortgage caught up. In July, Avelo transferred our loan to Litton. We made our July payment to Avelo; however, we were short $800. Mid-July we received a letter from Litton stating we were two payments behind. This was not true. We contacted Litton and they told us the payment we made was applied to taxes and late payments. I explained to them that our taxes were suppose to be taken out monthly and not all at once. And even if they did apply some of the money to taxes were was the rest. They could not explain this to me and has not to date. I have constantly asked if we could have a loan modification or speak to someone in the modification department and was told that I could not speak to anyone and there was nothing they could do to help us because our loan was not schedule to adjust until January 2009 and they could only modify our loan 60 days before it's schedule to adjust. I contacted Litton in August and made a payment arrangement with an agent; however, when I received the paperwork the amounts were different from what I discussed with the agent on the phone. Also, the payments were higher than our current payment we are scheduled to make and stated there is no grace period. I called Litton when I received the paperwork again and informed them of the situation was told someone would call me back. No one did. A week later, I called Litton and was told the only thing they could do is the payment arrangement because our interest rate is 6.5% and even if they modify our loan they don't go below 7%; therefore, they would not be able to modify our loan even if it was within the 60 days. This house is our home and we would like to find a way to get a modification loan so we can keep our home. I contacted Litton again and made the same payment arrangement but asked them to add a grace period. The agent stated he would do that and forward the new paperwork to me for signature. To date I have not received any paperwork. Our home's value has dropped considerably and continue to do so. We received a Notice of Default and Intent to Accelerate from Litton in August but made our payment anyway this month. Today we received a letter from Litton stating we have fallen behind in our mortgage payments and foreclosure action on our home may begin soon or may already be in progress. They state they would like to review our financial situation to assist us in possibly avoiding foreclosure and they they will not delay foreclosure action on our home. I don't trust them. I have given them all our financial information and asked for a loan modification, as well as asked to have the outstanding amount put on the end of our loan. They have not helped us. What should I do at this point. We are not knowledgable about loans and have constantly been made a fool of with refinancing. Should we be getting an attorney at this point or what? Help!!!