It’s no secret the people across the nation are stuck in their ARM mortgages and can’t refinance. I talk and converse with these people every day. Many are just trying to avoid foreclosure and save their home. But many are losing the battle daily and the need mortgage help right away..
There has been a lot of talk in regards to the term loan modification and loan workouts but not many people are clear on how they work and how they can get out of those ARM loans that are just killing them financially.
Let’s get things straight here. Lenders and investors are here to make money. Plain and simple. It’s not about being nice and helping people, it’s about making money and a return on their investments. When these investments start to head south and they are at risk of losing money is when they are interested in what is know in the industry as loss mitigation.
What that means is that when they are about to suffer loss in when they will mitigate to off set loss.
It’s not about them helping people make it through tough times and to be your friend. In a perfect world yes, but not in a capitalistic society like we have here in the US.
Some lenders are offering a loan modification prior to someone being late on their mortgage but it seems to be more of a rarity then the norm. Usually it is when a borrowers is 3-60 or 90 days late and in risk of foreclosure is when they will offer to work with you.
{ 17 comments… read them below or add one }
I have a second mortgage with HSBC and I can’t get a live person in there loss mitigation department to talk to me. I went so far as to send a fed-ex package that was a duplicate of what I sent Central Mortgage Company. Neither company is willing to talk to me. I am a sitting duck right now waiting for the shoe to drop.
Any advice would be greatly appreciated.
I have been going back and forth for over a month, sent them everything… the 3000 i didnt have… lost my car because i couldnt pay, send stubs, taxes, and bank statements, and letter… everything they requested.. and then they said they need “more” stubs!! ???
what a bunch of quaks and liars.. i can never get anyone of the phone who knows what I am talking about!!! the guy who is supposedly “working” on our acct has no voicemail.. its like how does a big company like HSBC not have a voicemail?? I work for a small utility company and have a voice mail! For god sakes schools have voicemails!! all they are doing is giving us the run around!!! HSBC is a bunch of ripoffs.
Call ACORN as soon as possible. HSBC gave me the runaround for over 8 months saying they would do a loan modifications to add the missed payments to the end of my loan and lower my rate. I sent them the paperwork four times. I never got a response until ACORN intervened on my behalf days before the sheriff sale and then they wanted a very large payment no loan mod no rate reduction. Go to ACORN.ORG They will help if they can.
I don’t know if ACORN will help. I asked them for help a FEW times. Emails and calls never returned.
You might try writing a RESPA letter and address it to the Compliance officer for HSBC or maybe the STOCK holders. LOL
I tried to prepare in advance, calling HSBC to try a work out or any suggestion or help in preparing. They told me that they do not do work outs and they cannot even discuss any options with me since at the time the call was made I was not in default. I replied, do you mean to tell me that I am calling to tell you in advance I will not be able to make my payments any longer and your saying, at this very moment I am not in default so you can’t talk to me, I am actually trying to do the right thing and in advance so I won’t have to be in default, but you want me to destroy my dredit before you talk about options, what position does that leave me in, bad credit, upside down loan, adjustable rate that they PRESET to jump to 9.3, then 12% within 3 months…the way this loan was written, we were raped as consumers and didn’t feel it until now just how much damage was done by signing with them. And that’s besides the fact that while making my payments within the grace period, w eget call as early as the third of the month, 7am on SUnday morning, 9pm Sat nights asking for payment…wow, I answer as I do every month…I am not past due, I am not even past my grace period or near it for that matter, they reply-payment is due 1st of the month so you are in fact late…what the hell???? I HATE HSBC, I fell since day 1 we have been harrassed monthly…and you know…we’ve never been charged a late charge…isn’t that funny, and yet we are still harrassed monthly, even tho they knew since day 1 how our paychecks land and we make the same payment on the same day every month…HSBC SUCKS….HSC sucks too, that’s their sister store that they set uyp to call you, although they don’t mention that there loans are in house rates, not marker rates, they promise you one thing and end up signing something else and unless you agent is very aware of what the hell they are doing, your advised, oh just sign, it’s all the same…so be aware folks, no one actually has your back, have the sense to have your own back it just might save your family home…for us…it’s too late…were no in default and because were upside down they want 70K before considering a refi…so we lost our war…pls dn’t lose yours!
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I have a contact @HSBC in the loss mitigation Dept. E-mail me at info@cfsaionline.com to further discuss
R.
I was researching the same thing when I saw this.. I can not agree more – but I am still going to look for a better source
How about taking out mortgages that you can afford, rather than breaching the contract that you signed with your lender and complaining about the repercussions?
I think the problem doesn’t lie in people taking out mortgages that they can afford, it’s the fact that ARM rates adjust to a preset amount with any lender…typically 3 full percentage points on the first round, and an additional 3 percent about a year later. When homeowners attempt to refinance their home to get out of this “teaser rate”. they are finding that their home’s appraisal is coming in significantly lower than the amount of financing they need. This means you’re either stuck with the original mortgage and ridculous rate increase, or you lose your house.
I personally worked wth HFC for a hardship program in which my interest rate dropped 4% for 6 months, saving me over $3,500 during the 6 month period. This saving is paying for our increased property tax…which skyrocketed due to all of the homes in the area that have been foreclosed upon, thus no property taxes were paid to this little New Hampshire town that basically has no other income for schools, programs, etc. than property taxes.
Might I recommend to anyone having difficulties contacting their lender to try ACORN. If that doesn’t work, go through the feds at http://www.hud.gov. If there’s anything that a mortgage company doesn’t want more than your house, it’s a bad rep with the feds….
Thank you for the information.
Great article found it very informative indeed. You have some great resources on your blog. I like looking at the best mortgage rates refinancing
HSBC Loan Modifications are a scam to collect more money from you prior to forclosure!!!! Lost my job and got behind. Called them and tey agreed to work with me however would need a minimum $1000.00 check by phone to qualify..agreed “verbally” for the payment to be 1000-1200 for 6 months. Got the letter in the mail and it was 1950.00 per month…leaving us with $500.00 per month to pay other bills and eat?????? Couldn’t do it….they called again and offered to hold off on forclosure if we could pay another $1000.00, and they would “come up with a better plan”..we did and they didn’t! This is now April 11…sale date may 5….another offer….pay 3k stop forclosure…and 5 year plan at 1162.00/month? Not bad…send me the papers!!! never got them! called and it was now $1500/mo…..glad I waited and did no more cheks by phone!!!!!….GET IT IN WRITING!!! They just want to get as much $$$$$$ as possable before they take your home!! Sad, but true!!! They lie!!!! AND!!! This was their loan modification department doing this!!!!!!
HSBC will lose money if you lose your home that is not what they want to happen.
However, the terms of the ARM loans are disclosed to the customer. We are talking about subprime lending here, meaning you have bad credit feel lucky they gave you a home loan at all.
HSBC will work with you if you work with them!
How can call your creditor and say help me because soon I am not going to be able to make my payments at all? That’s not how the world works if you have a loan you have to pay it back no matter what happens to you unless it is insured, which is something HSBC offers to its customers when they open a loan.
If you lose your job, go back to school, get in an accident, get sick whatever – you still have to pay your bills.
The point is, it’s better to send them something then nothing at all. Even if it does not meet the minimum.
Step-by-Step Guide To Getting Banks To Discount Properties by 40%!
my car loan is way over due. Can not afford to pay on it and it is ruining my credit. due to trying to get others to pick up payments the car has occured high milage and body damage. This will make it to were I can not get any money out of the car in a sale. I owe 18,000.00 still which is riducules since it only cost 17,000.00 to start. I am out of options and need solutions. please respond by e-mail.
Have just received the download of your introductory ebook or segments of the loan mod process. Can’t seem to access or open any of the areas in either text format. I would like to look at these and consider your full text book once I can get to the data.
I do some loan mod cases now through a firm in my local, as well as referring (enrolling) several ARM loan clients to my website for the same service handled similarly but with some flexiblility in the pricing for the services.