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

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.