• Report: #300272

Complaint Review: Saxon Mortgage Services

  • Submitted: Tue, January 15, 2008
  • Updated: Wed, April 09, 2008

  • Reported By:Columbus Ohio
Saxon Mortgage Services
Po Box 161489 Ft Worth, Texas U.S.A.

Saxon Mortgage Services Saxon Mortgage Services over appraised my home Ft Worth Texas

*Consumer Comment: You're lucky it's only 17K!

*Consumer Comment: Equity pulling!

*Consumer Suggestion: Saxon?

*Consumer Comment: Declining Market

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My husband and I bought our first house in 1999. We were very excited about it. We bought it for 89,900. We put on a new roof, put in a wood deck in the back yard. we also added some patio doors to enter into a breeze way of the kitchen. The house has 4 bedrooms, but only one bathroom. We have 2 kids. The house has a big shower in the finished basement, so we decided to put in a toliet. It has a sink. So with all that we thought it might make a second bath. We are very happy with it. Our kids are graduated from high school and wanted to go to college. Well, my son graduated in 2003, went to college for 2 years, got a girl pregnant and dropped out. My daughter graduated in 2005 and wanted to go to college as well. While we are still paying the loan for my son's college, we were wondering how to get the money for my daughter to go. My husband is diabled and can not contribute the way he wants because he is on Worker's Comp. and Social Security. So I have the weight on me. I have a good job. We had been seeing this advertisement about interest only loans and decided to get one so we could pay for the loan for my daughter to go to school. We called Randall Mortgage Company. They came out and apprased the house at 145,000. We thought that was great and thought that was because we had put all that work into it that was why it went up. So we refinanced in 2005, interest only for 5 years at 7% interest, for 2 years on an arm for 5 years. We thought before it went up we could refinance and get a 30 year fixed at the end of 2 years. We just needed a little head start to pay the student loan for my daughter's education. Well the 2 years was almost up, and we started to look into refianancing. Everything was looking good. We had a good credit history. And everyone was telling us we had a good chance. So we settled on Quicken Loans. They came out and appraised the house. The appraisel came in at 120,000. We were shocked! We owed 137,000! Our house was over appraised by 17,000.00. And there was nothing we could do about it. We are stuck! For 2 years we paided 920.00 a month at 7%. It went up to 10% in August of 2007. Now we pay 1335.00 a month interest only. It will go up 1% every 6 months for the next 3 years I think. So now, starting in February it will be 1390.00 a month for six months, then it goes up again. We can not afford this. We cannot refinance, because we owe more than the house is worth now. I am afraid we will lose our house just because we were trying to give our kids a better education. Unless we come up with 20,000.00, no mortgage company will touch our loan. So within the next year we will lose our home. Is there anything that can be done? Does anyone know who can help us? Do you know anyone else that this has happend to? I know we are not alone.

Distressed
Columbus, Ohio
U.S.A.

This report was posted on Ripoff Report on 01/15/2008 02:24 PM and is a permanent record located here: http://www.ripoffreport.com/r/Saxon-Mortgage-Services/Ft-Worth-Texas-76161-1489/Saxon-Mortgage-Services-Saxon-Mortgage-Services-over-appraised-my-home-Ft-Worth-Texas-300272. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Comment

You're lucky it's only 17K!

AUTHOR: Nikki - (U.S.A.)

You're lucky your difference is only $17,000. Had I pulled out all my equity when I refinanced 1 year ago, I would be looking at a $60,000 difference. Yes, just last May, my home was appraised at $60,000 more than it is worth today. And yes, the appraisal done last year was a true appraisal for last year. It wasn't over-appraised, it's just not worth that much this year.

To top it off, it looks like you refinanced in August, 2005. In August, 2005, my home would have appraised at $100,000 more than it is worth today. It has dropped around 30% in value since 2005.

What if your home only appraised for $120,000 when you refinanced? You would have gotten $17,000 less.

Good thing you got the money and weren't one of those who actually purchased at the higher prices and really lost.
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#2 Consumer Comment

Equity pulling!

AUTHOR: Robert - (U.S.A.)

This indeed seems to be the trend.

I was taught decades ago to NEVER, EVER pull out ALL the equity in real property when you refinance. A home is an investment and it's only worth what someone else is WILLING to pay to purchase it. The housing market DOES fluctuate and when you refinance for the full value (pull all equity) you do not have a cushion for when the market takes a down turn.

It's unfortunate, but you pulled all your equity out, went with a "interest only" and now you are indeed stuck. It was a poor financial decision - you motive was admirable, but it was a poor financial investment move on your part.

I can think of only 3 things to do at this point that might help.

1 is to sell the home and cut your losses. I know this isn't a pleasant idea, but that's much better than going into foreclosure. You could purchase a smaller, less expensive home or rent a small appartment until your back on your financial feet again.

2 is to see if your daughter can obtain some student loans to partially reimburse you for the cash you shelled out for her to go to college and you could use that money to get out from the deficit that would be from selling the home. Then you might be able to immediately turn around and invest in a smaller, less expensive home.

3. Consult with a mortgage expert/financial planner to determine if there might be some other options for you.

Good luck.
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#3 Consumer Suggestion

Saxon?

AUTHOR: Mortgage - (U.S.A.)

How is this saxons fault??? its nobody but the risk of buying a home. market goes up and down. its not that the property was over appraised, its just that since then the market has dropped and propertys are losing value.
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#4 Consumer Comment

Declining Market

AUTHOR: Sportluva - (U.S.A.)

Your house was appraised correctly in the past, problem is with interest only loans, you only pay interest- not principal. So you didn't pay a cent towards the equity in your home. In those two years, the entire US has seen declines in property values. Since you chose a very risky loan, your home value went down but your loan did not... this is nobody's fault. It's just the market and there's nothing that can be done until values start rising again in a year or two.
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