Today I discovered what many people probably suspected. Saxon Mortgage did not foreclose in the middle of winter because homes would freeze and become damaged. Instead, Saxon Mortgage promised HAMP modifications that never happened, and foreclosed or threatened foreclosure when the weather moderated.
Our property manager went to inspect our properties in Alabama. Neighbors told her of a lawsuit against HUD, where HUD did not sell foreclosures, using the homes for low income housing instead.
Friends of foreclosed property owners now see their own home values dropping even more, while their former neighbors are homeless. Nobody is very happy with their new neighbors.
The government retains the right to the homes, and after PMI and other insurance sucked up the difference between what was owed on these foreclosures and the government’s obligation is, in many cases today’s value is half of what homes were worth in 2005 – 2007.
While we always made timely prompt payments to nine mortgage companies – including Saxon Mortgage – this year’s property inspection in Alabama revealed HUD’s plan to stop putting people in “the projects”, while making them our new Alabama neighbors with little or no interest in the homes they occupy.
Consequently our homes will list for less when we sell them, and will rent for less in the future. For years we’ve always done the right thing by our renters, and always maintained our own perfect credit. I think it’s time to take a loss and get out of the rental business in North Alabama, thanks in part to HUD.