SAXON Loan Modification SUCCESS!!!

[bernz]

Hi- im about 6 mos back now with saxon, there is a second loan that is privately held at 10% of purchase price (25K) The first loan was for 220K through New Century, now it is with Saxon, 9.2% intro rate and then 2 year arm 6 month Libor - i sent all info in for a requested loan modification. and I am waiting to hear back- any advice? I do call them everyday, but they say allow 15 days for them to respond. Thanks,

Welcome and thank you for joining the forum....

Saxon is difficult, so be prepared, log every conversation that you have with them and get names and as many numbers as you can. Be prepared for forbearance as an alternative to modification, if you can get both....GREAT. However being that many months down is more a forbearance situation at first and then the mod rolls in after the arrearage is paid. With luck you may see some of the arrearage rolled onto the principle, capitalization. Are you delinquent on taxes and insurance? That to is a concern as far as this equation is concerned, they are going to want that paid as well. All of this can and will to some extent roll into monthly payments from here on out. They are going to take the taxes and insurance in monthly payments going forward and the arrearage if you are delinquent will have to be spread out through the payments as well, some of it may capitalize, however with the depth of delinquency and if there are delinquent taxes and such the amount that can be capitalized is just so much in the long haul analysis.

You do need to call daily, the 15 days stuff is probably a myth they say to make themselves feel better.....so call daily. This is an involved and drawn out process. Meanwhile any offers and commitments that they make to you fax a copy of them as you understand them the day you are verbally given them to cover yourself. Make sure that you fax 3 times and have the property address, borrower name, loan # and last four of primary SS# on every page so with luck it will get to the right place.

All in all you have done what they have asked, call daily and make sure they know that you are being proactive and focused in your goal. Question was this a third party verifiable hardship that caused the delinquency? Did you fax that data to them and is it cured and not likely to recur?

Keep us posted and let us know how you are doing with this process and Saxon. How is the payment stream on the Second, current?

[bernz]

Hi, thanks for the response, I am current on Insurance, the taxes are due this month and are not paid. I got into this situation in an interesting way! I was a realtor, and the commissions stopped rolling in!! Wife is back to work full time and i work ful time, so what caused it is cured, now jus ttryin gto find out if they are going to work with me or not. They seem to indicate on the phone that they are working with people in any way possible- we shall see!!

All that you told me is a good thing...very good, the taxes being non-delinquent in effect are a blessing. They will work with you far more readily than if they were, and the effect/affect to the payment stream will not be extreme payment shock. If there had been multiple delinquent tax issues the payment shock would be also the capitalization issues would be at risk i.e. arrearage added to principle balance....you have some room to play there with not having huge tax issues to deal with as well as the delinquent payment issues.

You can show evidence of the hardship being cured by the "back to work" situation and as such they again will be much more prone to extend accommodation in these issues.

Please keep us posted in your efforts and their responses...thank you.

[bernz]

Thanks for the info, i will keep you all informed. I am waiting to hear back from saxon, i do call every day! I am hoping they modify it to a payment i can afford. I am concerned about how much of a down payment they will request, and when i di dthe budget they sent me i was -27 dollars a month, but i forgot to include the fact that my wife got a raise in pay effective march 1st, which will put me a coupld hundred in the positive, Do you think they will make me re-send the budget?

Redo the budget and reference the raise, that is important and get it faxed to the proper party...make sure that you get their fax number and include you name, property address, loan # and last 4 of primary borrower SS# and fax it 3 times to get it where it belongs.

Yes that is important and you should also get them a paystub with the raise in it the minute you get it and if you have it a copy of the raise letter from her work.

[bernz]

I called saxon today, and was told my financial package arrived and it was assigned to a representative, and they gave me her extension, she is in conumer and governmental affairs. they told me she just recd it on the 3rd so to be patient to hear from her. I called her anyway, and i introduced myself, and told her i was looking forward to resloving the situation as soon as possible! Ill keep you all posted!

[Moe Bedard]

Bernz,
That is great news!! Way to stay on top of them..
Keep us posted...

[mreedlaw]

Good news - so far so good right? Looks like ElRob has some company with Saxon Mortgage folks (different situation, I know...but we're all in this together right?).

Take care, and please keep us posted,
Michael

Now the trick with them is to stay proactive and call daily, they would miss you if you did not. If they arrive at any agreement verbally with you be sure that you fax that agreement as you understand it to them with you name, loan number, property address and last 4 of SS# on every page.

Cover your @ssets, particularly with this group.

[bernz]

I will be sure to follow that advice and call them daily as i have been. I now at least have an assigned rep at the moment with a direct extension.

Get to be their bestest friend.... on holidays send a greeting card.

[bernz]

Update from Bernz- saxon rep called me today, she said whe was going to try and get it approved to 7.5% fixed for one year, then 8.2 fixed for the next year, and then 9.2%, fixed for the following year, and then adjustale after that (1 % 6 mo libor) She told me that was as good as she could do since my initial rate is 9.2%. (the good news is that idf the do that i wont be paying 1400 a month in daycare in 3 and half years! She said she is going to request that they add the back payments to the end of the loan as a baloon payment (14,000) She asked that i give her 3 days to get back to me. Ill keep you all posted. If it goes through i can swing that, and then i hope refi by that 3rd year fha to a fixed payment)

[Moe Bedard]

Bernz,
That is great news...............
Sounds like a good Plan that you have in place......
Keep us posted.....

Now do not let up, continue to harass them, they are famous for "forgetting" to mail the agreement, follow up....etc....

Remember call, call, call and fax, fax, fax....the squeaky wheel gets the grease and in your case you are doing a bang up job...

Please do not let this fall through the cracks as you think they will follow through, they will not......PLEASE....

By the way great plan...you get that you WIN the brass ring on the pony ride that this rodeo has become.

[bernz]

I am not going to let up, i will continue to call and fax. Does anyone know if most of these loan modifications are including taxes and insurance or not? Currently, my taxes and insurance are not escrowed.

[Moe Bedard]

Bernz,
Yes in almost all of the modifications they are fully amortizing the payments and including PITI.
Let us know when that agreement gets to you......

The modifications with the sub prime servicers do generally include the taxes going forward, but not always the insurance...you need to have that clarified at the time the modification is verbally presented to you. The paper work should also indicate how the payments are being taken, i.e. taxes and insurance or taxes only.

[bernz]

I just heard from Saxon today and I got final approval on my loan modification, they said to expect 5-7 days for the paperwork to come. The lady I dealt with was very nice, but i can tell you, that none of the items i personally sent ever seemed to get to their general fax number. I called the 1-800 Hope line and that worked well, they called me back and said they had the budget from hope now, all i was asked for was 2 paystubs and had to tell the person over the phone how i got to where i was at (7 mos behind) They took the entire back amount and added it to the end of the loan as a balloon payment due in roughly 30 yrs. They fixed my payment for 3 years, reduced interest rate by 2% (of which it had not increased as of yet) which is what i wanted,because right now i am paying 1400 a month in daycare, but that will be gone in 3 years. (of course a 30 year fixed would have been nice, but ill take what i got and refinance it to FHA . My experience thus far with them has been positive and professional (for anyone else dealing with them right now) She told me the atorneys draw up the paperwork and are backed up right now, so Ill be on the look out for that fed ex package in 5-7 days!

Looks like you may have WON!!!!!!!! Watch for that package and to an early and much deserved....



CONGRATULATIONS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


I am so happy for you and your family...please keep us posted and let us know the final terms, but what you wrote appears to be a blessing.....

[bernz]

Hi, well i am waiting for my loan modification package to arrive, Saxon had called me on Monday to let me know it was approved. Yesterday I called the City because my taxes were due 3-15-08, but Saxon paid them in February?? I have called my rep and left a message to let her know i was still waiting for the loan modification paperwork, (she said 5-7 business days, it has been 4 days, so no worry there yet) I am just wondering how they are going to handle this with the taxes, Are they just going to make me escrow going forward? They paid 3700, and this issue never came up in discussions of the back payments or if the taxes are being escrowed going forward. Any advice? Im hoping i dont get a suprise with this loan mod paperwork that i did not expect.

Most of the modifications are requiring taxes to be collected, particularly where they were delinquent in the past....they have no choice it is an environment that is requiring that all possible material threats to the first lien position are addressed past and future.

[bernz]

Thanks for the info- do you think they will require that the 1 year back taxes be paid in full for the completion of the loan modification. What i dont understand is that they asked me exactly how much Money I could put down, which was 1600, and she never said that i would also need to come up with the property taxes on top of that amount? I have a call into her and am waiting for a return call, alon with my modification paperwork, I guess ill have to wait and see how they are doing this.

[ltellez77]

CONGRATULATIONS!!! I'm in the middle of requesting a mod from SAxon as well. I just faxed over the info last friday. I refaxed i yesterday 2x as well, just in case. I phoned and they told me that they were unable to confirm that they received it until 15 days when it gets assisgnedc to the workout dept. I hope I get good news as well. Wish me luck!

[bernz]

Hi everyone- well my loan modification paperwork finally arrived, i have been calling daily for status. It was not what they had proposed, the rate was higher, they initally proposed to make the rate 7.5 for 12 mos than 8.2 for 12 mos, than 9.2 for 12 mos and then adjustable every 6 mos thereafter. The rep told me that was her proposal, but made it clear that she was not sure if that is what they would approve or not. However, the good part is that they fixed it for 5 years! 9.2% was my start rate, so all in all, im relieved, i can make the payment and i have a 5 year lock on it,. they tacked all the back payments on the end of the loan, my down payment is 1600, not too bad for being 8 months behind. Ideally 7.5 would have been nice for 5 years, but that is not the case.