Dispatches From The Displaced: Mortgage Company Instructions Put Couple In Foreclosure

06/18/2009 05:52 pm ET | Updated May 25, 2011
  • Katie Saddlemire

Are you facing foreclosure, or have you already lost your home? Share a story of how the housing crisis has affected you by emailing submissions+foreclosure@huffingtonpost.com.

Last week, we heard about Bob, a retired man who said he lost $1 million in housing investments and his own home as his tenants faced unemployment. Bob is not alone, as each day 10,000 people have their house foreclosed.

Today we hear from Peggy Kanowski of Wyandotte, MI. After being told she had been approved for a loan modification, Peggy says she was shocked to learn that her home had been put into foreclosure.


Peggy and Gerard Kanowski with their two children on the steps of their home in Michigan.

We have our loan with Saxon Mortgage. My husband's hours were cut at work
and we were beginning to have a problem with our cash flow. We were living check to check with no money for savings or a rainy day for car repair or home maintenance unexpected repair bills.

We applied for a loan modification on November 12th with Saxon. After several phone calls we were told we were approved for the loan modification on December 26th. They said the lawyers are giving the final approval and will mail the papers. In the meantime they told us not to make a payment as this would mess the numbers up on the modification.

After several more weeks we got nervous because we still did not have any paperwork. We sent in a payment on January 23rd. Saxon kept the payment in suspension, did not apply it to our mortgage payment and then threw us into FORECLOSURE. Saxon says we have been approved for another loan modification on February 12th and the paperwork will be mailed "soon".

We are now trying to straighten this mess out with the help of Wayne County Neighborhood Legal Services. We live in Michigan which is a non-judiciary state so our house goes up for Sheriff sale on March 11, 2009.

The Kanowski family received a foreclosure notice on February 4th. The letter, sent by Orlans on behalf of Saxon Mortgage Services Inc., suggested that the family could apply for "a loan modification" or a "repayment plan."

This whole process is totally wrong. All we did was ask for a loan modification and we have been in the runaround ever since. We could lose our home even though Saxon Mortgage says we are "approved" for a loan modification and the paperwork will be "coming soon". We have asked them to stop the foreclosure and they said they can't until seven days before the sale date-that is their so called company policy.

This whole process has caused so much stress on our family and I pray that other people will learn from our mistake.

Saxon Mortgage Services Inc. referred the Huffington Post to the Morgan Stanley communications office, which declined to comment.

Are you facing foreclosure, or have you already lost your home? Share a story of how the housing crisis has affected you by emailing submissions+foreclosure@huffingtonpost.com.

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Find out more about Dispatches from the Displaced, HuffPost's Eyes&Ears series of reader-submitted foreclosure stories.