Saxon Loan Modification - Not Late, Though

[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.

[LillianM13]

Just bumping this thread up as I don't want it to disappear off the page. Does anyone have any thoughts/advice on this matter? Please???

Thank you.

[schwefls]

Hi Lillian:

Welcome to our forum. I wanted to stop in say hello and let you know we are here for you. Shortly someone will be reaching out to you to answer your questions and provide some advice/suggestions. In the interim please hang in there.

[RudyJay]

Hi Lillian

I can't answer for Saxon but another member in the forum had sent in a monthly payment during the loan modification. They were approved for the mod at the same time the payment made. The lender held it in a "hold" and when they needed the $ for a downpayment, the lender transfered the $ and used it for the downpayment.. So all the member has to do is to sign his docs.. rj

[LillianM13]

Thank you both for commenting. While what Saxon said about making the payment seems logical, I guess I just feel better having it confirmed by more trustworthy outside sources. I'll try my best to be patient.

As for a process update, I finally got in touch with someone at Saxon's loan modification department today (only took a week to get through). They said they're not showing the paperwork in the system yet but that the loss mitigation department is very busy and it's taking them a little over a week to process all of the incoming faxes and get them entered into their system. Apparently, all of the loan modification paperwork and short sale paperwork go to the same stand-alone fax machine. Can you imagine how much paper they must go through?! Anyway, seems like a big mortgage company like Saxon would use a more efficient paperless fax system but what do I know. Will update with progress (hopefully) as it occurs.

Thank you, again!

[tiffany]

Hi Lillian,

I have a little bit of experience with Saxon that I thought that you might be interested in. We were on a repayment plan with them for 10 months, we sent in the info for a mod after months of being told that our lender did not complete them. Well in the meantime our mortgage was brought current. So when they got to our paperwork they said that we did not qualify since we were current. (We were able to bring our mortgage current early due to a grant that we received, since this is why we were able to become current we again qualified for a loan modification.) BTW they do have a paperless fax system, when the faxes come in they go to an e-mail address. We are still waiting for our modification, they are very behind and just brought on about 20 more people to their workout department. I wish you the best of luck, nothing makes sense with this company. Just stay positive and bug the heck out of them in a nice way until you receive your modification

Tiffany

[LillianM13]

Thank you, Tiffany. I spoke to a different person today and now she's telling me it's taking 15 business days to get assigned to a workout negotiator. Man, it gets longer every time I call. Basically she told me I have to call every day and see if either the package has been flagged for being incomplete or if we've been assigned a negotiator.

Your post, however, brings up another concern. Will they work with us if we've never been late? We don't want to be late, we just want to be able to afford the mortgage payment and if we don't get the loan modification, there's no way. Has anyone ever heard of someone getting a loan modification approved if they're not, nor have ever been, late but can't afford the adjusted payment? Logically you'd think the mortgage company would want to work with you when you're proactive about these things but then, why apply logic to the situation?

[tiffany]

Hello Lillian,

Saxon is a company that really makes no sense at all. I can tell you that initially I was going to be dinied a modification becuase we finally brought our mortgage current. Than I found out yesterday that we could not qualify since our investor does not do modifications, I was already told this once and than told that was a mistake and the investors do modifications and than told yesterday that it was bad information and they do not.

Really there is no ryme or reason with Saxon, have you considered refinancing with a FHA mortgage? This might be your best bet. I was also told that last Friday they did a huge push and modified hundreds of eligable mortgages without their regular due process because they are so far behind. The new FHA secure guidelines go into effect on July 14th and this might make it easier to find a lender willing to take on FHA.

Good Luck, let us know if you would consider a FHA refinance if you qualify it may save you and your home

[marklinvenice]

My experience tells me it is better to go with a licensed attorney who deals with real estate law and modifications who DOES HAVE YOUR BEST INTEREST IN MIND. As you yourself say, Saxon is not looking out for your best interest. Why would you continue pumping money into a promise from a entitly you do not trust? I know it is scary but if they are not applying your money, holding it into account, and telling you they are going to reverse negative credit reporting, I would be very sceptical. I know there are concerned attorneys working at flat rates to stop this cycle of fear being created by the lenders. Us, as consumers need to put the power back into our hands. After all if it wasn't for the consumer there would be no lender making bundles of money while we lose our homes to their lust for greed! Sorry the 4th gets me all pumped up, and I think its time for a consumer revolution! Good luck, my best advice would be to seek out an attorney, pay him a month or so of your mortgage and have them resolve this problem for good!

[LillianM13]

Thank you for the replies. This is all making me extremely nervous. When I first began reading here, there were a couple Saxon success stories, albeit success after lots of frustration and hard work. Those stories gave me some hope that we just might be able to save our house and our credit. Now I'm not so sure. I mean, after all, we're not late and never have been nor do we want to be. Our only problem is not making enough money to afford the adjusted payment amount. There is absolutely no way we can afford it. If this loan modification doesn't work, we have no other option but to give up the house, go back to renting and allow our credit to be destroyed in the process.

It just sucks and is extremely stressful to think that there isn't anyone with any kind of power in Saxon's organization who might be able to see the logic in letting us keep our payment at the pre-adjustment amount instead of them going through their expense of a foreclosure to claim a house that's got more owed on it than it's worth.

As for the attorney suggestion, there's no money for an attorney. If it looks like Saxon isn't going to allow us to keep the pre-adjustment payment amount, that mortgage payment money will be going into a first & last month's security deposit fund for a rental so we have somewhere to live once foreclosure proceedings start. That's it - there is no other option.

*sigh* Thank you for listening. I'm about ready to give up any hope of getting them to work with us - I'll still call and bug Saxon for everything I'm worth but it's sounding like it's not going to do any good because we're actually on time about making our payments. How screwy is that?

[elrob1981]

LillianM13,

I totally agree with you all the way. I've been trying to get a loan modification from these guys since april and no progress has been made on my file. My negotiator is not returning any of the hundred calls and faxes I'mve made. This is getting rather frustrating and I'm about to give up on the modification and apply for a short sale. Now what's even worse is that my case has been escalated to my negotiator's supervisor more than once and yet no response from Saxon. This is totally unacceptable. I really don't understand why is taking so long to get an update from these guys.

I understand your anger and frustration. Just stay proactive and call everyday.

hope your case gets resolved

Rob

[Scott Hazlett]

Hi all,

Just some thoughts on the mod for the "unlate" folks. If your rate will be adjusting and you know you will not be able to afford then a budget is your stongest tool to send along with your mod request. Make your budget as thourough as possible - evidencing that without a doubt you can't afford. Send in bank statements (2 months), 60 days pay stubs, 2years W2's. Include ALL expenses you have, especially gas and other "living" expenses.
As far as their timing - it will be slow for some time. They are completely ovverwhelemed right now. I have a friend who is a branch mgr for a large lender and she states it will take them 6 months - minimum - to staff up and train for this.
Just keep plugging away and know that the frustration is part of it. Don't give up and you'll get there.

[RudyJay]

I agree keep trying above all else.. keep trying..follow up... but I did notice for me..it helped to be nice to the reps I am talking to... rj