Saxon Mortgage, correspondence and negotiation of work-out

[Joel Fraser]

Hello all.Thank you so much for this forum. My name is Sharon. I chose the name Survivor as that is what I am and what I would like to continue to be. My default on this loan, which is SERVICED by Saxon Mortgage, is related to a termination from Citi during the collapse of the industry. I was on FMLA over an injury and subsequently discovered cancer and dropped health insurance. With only a 3 month reserve in the bank, my finances didn't last long enough for me to "get back to work." No such luxury has been obtained yet, but I'm still looking, it's just harder when your dealing with medical care, COBRA costs and family needs on top of ... mortgage problems.I'm now in negotiating phase. In order to do that, one MUST be late to a SPECIFIC DEGREE. This is typically 3 months for a foreclosure, IMHO. You are very lucky if they refer you at one late payment. I got a response from LOSS/MIT at 2 months past due. I pushed 3 months and broke down and tried to make a payment to prevent the judicial filling. So far, they haven't put the check through. If they don't, I'll keep it for an attorney. I've already been through hardship submission and refered to Loan Mod and workout, but may have kicked myself back out of the system, again. I'm now going to respond via certified mail regarding the situation. Phone calls do not work and they are not legal requests.I truly need help with the letter writing and legality of this negotiation. I intend to request a reduction in interest rate on the first loan and a write-down or settlement on the second loan. Both are qualified as "predatory loans." I encountered a "bait and switch" and the paperwork trail would document fraud, IMHO (in my humble opinion). I don't know if it's wise to mention that (legal references, fraudulent documentations) or not when I negotiate... Why? Well, let me answer that... I've worked in the industry... If they (Financial vendor, bank, mortage, etc) know there is a problem, then someone will go back in and "correct" it. Clerical corrections are allowed. It's not against the law to say "sorry, you've received misinformation" and then the company takes action to CYA. The little people simple make note and pass it up to the bigger people, who handle a correction which allows them to protect themselves (legally). BTDT. Seen it.So here's my quandry on it. I've found this website while researching loan reviews for fraud. I think mine fits the bill. But if I request information from Saxon concerning official RESPA request for documentation, they may review my loan, and "correct" errors if it alerts them to do so. But I do want to know what exactly they have, because my HUD disclosures have "conventional" and "fixed." It appears my loan was switched at the 11th hour, literally "on the closing table." I did discover this post fact but had little means to pursue it legally. I had planned on re-financing at the 2 year mark knowing full well it was a high cost loan, but not knowing, at the 2 year mark, the interest rate would change to 11.5%. That's an extra $1000/month. I'm under with or without an official foreclosure on my record. My credit report is a required background check for obtaining re-employment in financial services and banking. I can't even get an "easy part time job at the local bank" and up my income to have a healthier diet. (kind of important when you have cancer) It's a moot point to apply for certain jobs or consider refinancing given the inevitable FICO score dive. So...I have to negotiate this work out and I have to stave off foreclosure. I can't afford to move, financially or physically. Even harder with three kids in tow.My understanding is that I have to outline a resolution to them and make an official request which they (Saxon Mortgage Services, " a debt collector") can refer and/or forward to their investor (some German bank I think) and they will approve or deny it.I certainly would like to find some reference sample letters or a possible review of my proposal request.Do I include my hardships or reasons in this proposal? For example, my second mortage would not be recoverable in a short sale or foreclosure auction, due to a significant drop in value of the real estate. They would not recover that money in a foreclosure action (judicial). I would be forced to bankrupt to cure my obligation of any shortfall and legal fees in the event of that conclusion. If they foreclose, they lose a lot more dollars than I am proposing as a resolution.Any advise? Thank you to anyone who can help.Sharon--------------------------FYI - my loan(s) qualify as "predatory" given this KY Statute - it's a 6 page read - I'm wondering if other states have any similar statutes or protections - and if these can be used to persuade loan mods and workouts by those that aren't playing nice http://www.lrc.ky.gov/KRS/360-00/100.PDF