At the 100,000 mile mark, you should have had the timing belt changed alon with the water pump and tensioner pulley. One of those may have gone out on you. $1400 for the engine installed, isn't too bad, but you can get a used neon engine anywhere from $150-$300 and install it yourself.
You could put the $1400 down on another car, but then you would still have 60 payments left on it.