[LillianM13]

Hi. First I have to say finding this forum has been such a god-send. Thank you.

As for the loan modification, we have never been late on our mortgage. Have had it for 3 years since we bought the house and have been making the payments on time. However, we got a notice at the beginning of June saying that the rate was going to reset on July 1st to $1,300 higher than what we're currently paying. Of course we can't afford that at all. So we got the loan modification paperwork from Saxon and have faxed everything in as of yesterday. I've got a couple questions for the experts (meaning you guys), though:

1) Will Saxon work with us even though we're not delinquent? I've read a couple threads where people were told by Saxon that they have to be late in order to get a loan modification. Definitely don't want any lates showing up on the credit report so hopefully that isn't correct.

2) I'd called Saxon's Loss Mitigation Department last week to find out about our July payment. I asked them that since we can't afford the adjusted payment but can afford the current payment amount, should we send that in while the loan modification process was going on. I was told that once they assign us to a "Workout Negotiator", our account goes into suspense and so any payments aren't applied anyway. That we should still send in the old amount because if we're able to get the loan modification approved, with the payment already being there, they will then apply the payment and any late fees or lates on the credit report will be reversed (because of the account having been suspended). Is this true? Should we send in the payment as usual in hope that we'll be able to modify the loan to keep the payment affordable? Or should we just hold on to the money and then make the payment once the process is over? Not that I don't trust Saxon but I don't completely trust them. :-) I know they don't have our best interest at heart and only want to get us to send them as much money as we can. Any advice on the payment issue would really be appreciated.

Thank you and will keep you updated as things progress. I'm currently on hold to confirm that they received the paperwork that was faxed in yesterday.