| Saxon Mtg. not willing to negotiate
Hi - First time to ever post to a forum but we are in that state of depression that sets in right after denial is no longer an option.
Our home is in Placerville, California (Sierra Nevada foothills). It is a modest 3 bdrm. 1.5 bath 1950's ranch house sitting on an awesome piece of property with a phenomenal view. We paid $325K for it in 2004. Almost overnight the appraised value jumped to $485K........ details of loan and our situation follows:
We have an interest only loan through Saxon Mtg at 8.6% for $436,000 which adjusts in February 2009 (6 pt. margin). The reason for the high interest rate is we didn't have perfect credit, husband is self-employed and used stated income. Our previous loan on the house was also with Saxon. After two years it adjusted to a payment that was 50% higher than the original payment. We made the mistake of pulling out equity for home improvements and ran our loan up from $312,000 to the $435,000 thinking the golden age of real estate in California would last forever.
Shortly after closing on the new loan, I got sick and eventually have been retired due to disability. Fortunately, I had paid for disability insurance through my employer and receive $3100 a month until I turn 66. I am currently 56. Since my medical insurance converted to COBRA we have had to pay $989 a month plus around $600 in co-pays for my monthly medications. Additionally, the income is taxable. So the $3100 turns into about $1000 usable quickly. We started using my 401k to make some of the payment each month until the $27K I had was gone. During this time, my husband was working 7 days a week at his HVAC business trying to keep us afloat. As a result, he injured his neck and after many procedures, etc. the leading spine specialist with UC Davis Spine Center has determined the only thing that will get him back to whole is a complete cervical disc replacement using a new artificial disc. Downtime will be about 4 months.
Now back to Saxon .... in February of this year, they notified us that they had paid our taxes since we had failed to do so, an impound account for taxes had been established and our loan payment was going up about $800 a month ... (from $3100 to $3900) to cover the tax advance as well as the future tax bills. We explained our situation and asked if they could please hold off on that and help us through this tough time. They said they could spread the repayment out over 12 months thus lowering the payment to $3700. We couldn't come up with this much each month since we'd used up our savings, my 401K, and all of our credit card lines and quit making payments in March.
Following this, I spoke several times with representatives from Saxton's collection department who explained we had to be 3 months behind on our mortgage before any adjustments could be made other than add the arrears plus charges to the monthly payments until we "caught up". It felt like I was talking to a brick wall when explaining why this wouldn't work. As many have reported, once the 3 month time period is up, Saxon files a notice of foreclosure. Ours was filed June 11, however, we didn't receive the notification for about 2 weeks.
Forgive me for rambling but I'm trying to make sure I tell it all. Sometime around the first part of June, I called the Hope Now people using the link on the Saxon payment website. The gentleman was very nice and said given the fact that we had made our payments on time for 3 years and wanted to keep our home, that the circumstances causing the delinquency were temporary and could be documented that he would submit a recommendation to Saxton suggesting they negotiate with us. He indicated we would hear from Saxton within 14 days. During that 14 days is when we received the Notice of Foreclosure (I'm sure it was coincidental - but still ironic). We never received the promised call and when I tried to call the Hope Now number again, I was told to leave a message and our rep would call back. This never happened either.
Today, I finally called Saxon again. The person I spoke with was condescending and said we'd have to send in a financial package. I lied and told him we'd sent one in 4 weeks ago and hadn't heard back. He indicated it had probably been lost. He took the time to take the financial statement information and concluded that we were about $800 a month short of being able to make the current payment and that therefore Saxon would not be interested in negotiating with us. I asked why the Hope Now solution hadn't been followed up on. He explained that their office was at Saxton Mtg.. and that the intake persons info was probably reviewed and "someone" decided there was nothing that could be done. He told me not to worry about having to move right away since a sale date hadn't been entered yet. He suggested I could call their attorneys (Quality Loan Services) to find what the sale date schedule was. When I explained our property would currently be worth about $225K, he replied that it was easy to see why the banks were having so much trouble (????)
Since this call, the Irish in me has awakened. Would it work to stall the foreclosure, if I file for a Chapter 13 bankruptcy? Is it true that the mortgage company has to cancel the foreclosure and accept a repayment plan for the arrears and reinstate the mortgage to a current status?
If this is true, would it then be possible to either make no payment or one and then default again? When the next notice of default was entered, could my husband then file Chapter 13 and once again delay the foreclosure. At the end of this period and shortly before the filing of the Notice of Default once again, could we then file a Chapter 7 and delay the foreclosure another 6 months?
Sorry, but I feel no remorse for making it as hard as possible for Saxon to complete its foreclosure.
One last grumble......am I missing something, but are all the gov't loan bail-out programs helping all the businesses etc and not helping the individual home owner's at all? Is there anything in the channel to actually help out the home owners?
Thanks for "listening".
Robin3350
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