Best Mortgage Loan :HSBC Loan Modification
HSBC Loan Modification. What a tough, tough process. First and foremost, HSBC has elected not to participate in Obama’s Making Home Affordable Program, and, for the most part, seems intent on not providing permanent solutions for homeowners whenever possible, preferring to
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HSBC Loan Modification. What a tough, tough process. First and foremost, HSBC has elected not to participate in Obama’s Making Home Affordable Program, and, for the most part, seems intent on not providing permanent solutions for homeowners whenever possible, preferring to opt for short term (typically 6 month) reductions in interest rate and payments through their “in-house” loan modification programs.
Although HSBC at one time indicated they were going to be taking a more active role in helping homeowners with ARM mortgages that have adjusted, and had agreed to Senator Dodd’s Home Preservation Plan, in all actuality HSBC could be doing a significant amount more to help homeowners avoid foreclosure.
Please note that HSBC and Homecomings Financial are one and the same lender now.
In January of 2008, HSBC launched the Comet program, which sought to identify repeated signs of risk and offer loan modifications to homeowners before they had to request help. This was a continuation of the HSBC Foreclosure Assistance Program, which is committed to helping homeowners modify their loans and stay in their homes, however the homeowners that were contacted by HSBC under their Comet program seem almost arbitrary, sharing little correlation in financial hardship or circumstance, and the loan workouts and modifications offered too seemed arbitrary.
HSBC Loss Mitigation Department Contact Information
Phone – (800) 338-6441
Address – Default Resolution Team, 2929 Walden Ave., Depew, NY 14043
Loss Mitigation Department – (888) 648-3124
Fax – (732) 352-7519
Website – http://www.us.hsbc.com/1/2/3/personal/home-loans/mortgage/existing/when-payment-difficulties-arise
Commonly Asked Questions
I was asked for a copy of the Financial Disclosure Form by HSBC as part of my loan modification package. Where can I find a copy of it?
A copy of HSBC’s financial disclosure form can be found here:http://www.us.hsbc.com/1/PA_1_2_39/content/usshared/Personal%20Services/Home%20Loans/Mortgage/Existing/Payment%20Difficulties/fnclform.pdf
What is the deal with the 6 month “band-aid” loan modification solution that I was offered? Are they ever going to place me in a permanent loan modification?
Most likely HSBC will only offer a 6 month, temporary solution unless you have a great Attorney. The majority of HSBC’s servicing agreements with their investors do not allow aggressive, permanent loan modifications, and the only way to strong-arm HSBC and the concerned investor(s) into actually granting a permanent loan modification is through either a detailed forensic audit highlighting multiple violations of RESPA and TILA coupled with a pending lawsuit, or through detailed examination of fiscal viability based upon NPV analysis coupled with Net-Cashflow borrower ability to repay the lower payment.
Should I get a Lawyer?
Definitely.
Where can I speak with others who are having a tough time with HSBC? Are their already any complaints against HSBC?
Most definitely. Here are a number of sites that should help:
If your lender is HSBC or Beneficial and you are in need of a loan modification, please complete the form to the right to have a free, in depth discussion regarding the best way to wrestle a permanent loan modification from HSBC. If you have additional questions about what exactly is a loan modification, or how one can help you, please take a look at the Loan Modification Q&A. For more information on Modification Zoom, please check out the About area.
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Have a 11% intrest, 1st Mortgage only.
Was told by First Financial if I have 600.00 in my checking at end of month, I could make my payment of 1900.00
HSBC is the worst company I have ever done business with. If I knew what I know now. I would have never done business with them! The comment on having a great layer is right on target. DO NOT DO BUSINSS WITH THIS COMPANY no matter what interest rate they offer.
Worse company I have ever dealt, with lied to me when I got the loan, would not negotiate a fair modification
Worse, all consumers should boycott and run this company out of business!!!
I have been dealing with HSBC Mortgage Services for the past year. All I can say, yes it is a difficult a process but I’m not exactly sure HSBC is entirely to blame. I do believe they want to help but if you didn’t prove yourself before your hardship, it’s gonna be a hard negotiation. You can’t expect something for nothing. If you have a legitimate hardship, its unfortunate that you have to deal with them in the midst of an economic crisis when the banks themselves are being taken advantage of – they have to guard too. Just be realistic.
HSBC certainly has issues with document management, which I don’t get because it is such a basic business service – especially for a bank. You will have to constantly re-send in information every couple of months which is a royal pain in the a$$ when your situation does not change. Secondly, any customer service rep from India is worthless – why do they use them? They will tell you to ignore previous communications, never transfer you to loss mitgation, and just flat out lie to you. So of course, you hang up, call back, get an AMERICAN in loss mitigation who are simply dumbfounded that you were told what you were. When you calm down, you will see that they are trying to help you.
Yes HSBC does service Freddie Mac and FHA loans and does participate in HAMP modifications. If your loan is not owned by Freddie Mac or secured by FHA, HSBC has services your loan to the servicers requirements. Realize that HSBC does own their own loans too and does not offer long term modifications. Find out if who really owns your loan. My loan originated with HSBC but it is owned by Freddie Mac AND it is FHA secured because of HSBC’s own requirements. I did not go into default until 1 month after the FHA-PMI was scheduled to discontinue, but I paid the previous payment late, so I had an unpaid late fee. For months, they sent me letters to pay up the late fee and drop the PMI, which I tried to do. Unfortunately for themselves they just kept applying the funds to the current mortage payment instead of past due amounts. Thankfully, for their stupidity, I now have 2 safety nets (Freddie Mac and FHA) which are the best 2 mods out there to protect your home from foreclosure.
Keep in mind that while yes, HSBC takes ALONG time to get to your hardship package, they do try to help you. My suggestion is to NOT take a forebearance agreement because they do not keep working with you and you just end up being more in the hole and more credit delinquint which will kill your credit score over 100 points. Push HARD for a modification, even if it’s a 3 to 6 month temporary. Keep sending in the paper work they need and do it with a smile. It’s going to be OK. Note that if HSBC sends your a pre-foreclosure notice, they move faster than the speed of light. You don’t want to get to this point! On the plus side, if it does get to that point, you finally get to talk to the right people there and they will do what it takes for you…. DON’T GIVE UP ON HSBC, especially if you are completely entitled to help.