Loan Modification

ComplaintsBanksHSBC

Complaint

0
Betty & Gene Arlinghaus
Country: United States
My husband and I are losing our home of 25 years and have been trying to secure a loan modification from HSBC .  We have been turned down numerous times and have submitted document after document to no avail.  I started to feel to us like they just turned us down without even looking over the documents we sent that were requested.  We talked to our Loan Counselor with HSBC around 4 o 5 times  since we started this process in January 2013.  We have someone new call us every two weeks or so and they would have to look up our account and go over everything over and over and each one would tell us something different.  It got to be so frustrating that it has affected every part of our life. Since we got behind due to lay offs and decrease in income we cannot afford our monthly house payment at what it cost at this point.  Thus we kept trying to get the loan modified to a more affordable rate.  After six months and now terribly behind we see no solution but to concede and let HSBC Bank take our home.  I don't understand why any bank would prefer foreclosure over helping homeowners stay in their home at a reduced rate.  Seems that would be the best solution for all involved.  Their loan officers who call can be nasty as well as talk down to you and treat you less than human.  We just have gone through so much and we are both 59 years old and have reached the point that we are ready to give up.  I can see why so many people complain about HSBC Bank.

Comments

  • 0
    tj
    Testimony by bank employees in some recent lawsuits have revealed that bank refi customers were being deliberately strung along in loan refis, to maximize fees rather than closing a lower cost loan, and to force customers to accept another loan on poorer terms.  It may be that you are dealing with a similar game by HSBC.

    It may be that it is not in HSBC's interest in closing a new loan, or it may be in their interest to push you to the wall until you have to settle on a much more expensive refi that barely saves you any money while it rakes in origination fees for them.  Foreclosure may be profitable to the loan servicer as well, as it also generates lots of fees.  If they don't actually own the loand, it's not their loss if they foreclose, and they could actually profit more from foreclosure fees than they would from originating a refi.

    Who actually owns the mortgage?
    Is it HSBC itself, or is it Freddie or Fannie, who either own or guarantee a large majority of home loans?

    If it's actually owned or guaranteed by Freddie or Fannie, you might be able to refi through HARP, even if LTV is high, and possibly through a different intermediary than HSBC, who may only be the loan servicer..

    Are there other bank lenders or mortgage brokers you can review your situation with, where you can get a straight unbiased picture of what your options are in the current market?
  • 0
    Bety Arlinghaus
    | 1 reply
    HSBC Bank holds the only bank loan and although they give you HUD's phone number when you speak to them it doesn't help because HSBC does not participate in HARP or any other government help programs for people such as ourselves.  All HUD can do is offer us a counselor to speak with which is what we did.  The home isn't worth the amount left on the loan so one alternative is to surrender the deed to HSBC.  Either way we lose our home.  HSBC has been in the news for the last couple of years due to their foreclosure practices. Doesn't seem to help us much.  But in response to your comment about them stringing us along we have felt like this for six months.  They cannot even supply us with a legitimate reason as to why they have turned us done all of these times.
    • 0
      tj replies to Bety Arlinghaus
      According to a  Rolling Stone article several months ago, HSBC was also apparently money laundering for international drug cartels.  A lot more lucrative than seizing homes, but apparently they were too big to fail, so regulators pulled their punches to avoid another banking crisis.  

      Before you give up, run this by a real estate or consumer attorney.  Not one of the "we can rescue your home, but pay us thousands up front" sort of scams.

      You can find consumer attorneys licensed in your state through www.naca.net
  • 0
    Grrrrr
    My issue with HSBC is exactly the same.  we have been turned down again and again for loan modification. Our mortgage is not own by FREDDY or FNMA therefore  it is very hard to get refinancing from other mortgage company or bank. My loan is adjustable and so scared that the when they raise the rates i will end abandoning my house. HSBC does even offer REFINANCING.... WHY IS THAT////
  • 0
    tj
    Check directly with Freddie or Fannie to see if they either own or guarantee the loan.  

    You may not be able to trust HSBC to provide you with accurate information, since it isn't in their interest to do anything.  Go past them.  

    If your loan is either owned OR GUARANTEED by either of the two, you may be elligible for HARP 2 refi, with another lender.

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