Apparently they are aggressively calling clients who are in an ARM loan that may be at risk of mortgage default when it adjusts.
Here is a quote for that article.
” The bank took a bad debt charge of $6.35 billion in the first six months, 63% higher than the previous year’s. (See ” HSBC Weathers Subprime Storm“) Nevertheless, HSBC expects no serious contagion from its subprime exposure. The company revealed that in the first six months of the year it had called 19,000 customers whom it deemed in danger of default. It offered to modify the accounts of about 5,000, holding about $700 million of mostly adjustable-rate loans, to enable them to continue repayments. The modifications could include rewriting the terms of the loan to reduce the rate or extending the reset date for a year.”
This is news to me because I have been getting a lot of inquiries and my personal experience with them hasn’t been the best, to say the least.
The article also explains that they are saying the worst is behind them and they will shift towards Asian markets etc. As I was reading it, I almost gagged on my sandwich. THE WORST IS BEHIND US? Where the hell do these investors live? Mars? Oh wait their in plush New York Pent Houses immune to reality.
They are now focusing on other markets. Figures! Out of sight and out of mind.
Here’s another quote from that same article.
” HSBC was the first banking group to reveal, in February this year, that it would pay a hefty price for having entered the U.S. subprime mortgage market–more than $10 billion in write-offs for bad loans. (See ” House Falls On HSBC“) Some five months after the event, Citigroup said investors’ attention might shift toward the upside. “We believe that this issue is now behind the company and that the market will start to focus on growth opportunities in emerging markets with profits from Asia and Latin America expected to grow 27% to $12.2 billion this year.”
What’s your experience in dealing with HSBC’s loss mitigation Department? Share your stories and ask any questions so we can help everyone avoid foreclosure.
Hi Moe,
I think this website is great!
Could you please advertise to people that there foreclosure counselors who will do this work with them for FREE. We are all HUD approved and not allowed to charge. They can call 800 569-4287, put in their zip code and get the closest agency.
While everyone can do it on their own, it is best to speak to someone – like you, Moe, or my agency – because there are reasons why the lenders do not offer modifications and we can help homeowners present a good case.
You are doing a great thing! I’m overloaded with calls, it is getting bad out there! You’re help is wonderful and I hope you add the HUD agencies to your list of advice.
Feel free to email me for more info!
Thanks so much Stephanie!
I actually mention HUD non profit agencies a lot in my blog. Just not every post
But I do plan to have a section just for non-profits to help people and get the word out. I am redesigning this site to make it information packed!
My goal is to get the word out that there is help and great agencies like HUD have certified housing counseling agencies that have special training and offer free services.
I would love if you can do some guest posts and let us know more about what’s going on and what HUD is doing to help people avoid foreclosure.
Hope to hear more form you!
Best Regards,
Moe
Hi Moe,
I would love to help out!
Can you publish as a post the recent plan for New Yorkers? Governor Spitzer has teamed with SONYMA to refinance New Yorkers in ARM’s! Here is a link to the press release – http://www.ny.gov/governor/press/0727071.html – there are restrictions but it should give some New Yorkers relief!
svirtokilo 36 post
all about svirtokilo and top news
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!
i am looking for information on how to travel cheap in asia and your post has given me some ideas, wish you all the best – CHEERS .
I have a contact @HSBC in the loss mitigation Dept. E-mail me at info@cfsaionline.com to further discuss
R.
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….
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.
I have been trying to get a loan modification with HSBC and they keep saying they will help. Talk me into doing anything to keep current and say it is in my best interest but then they do nothing. I have credit card debt of 35,000 using cards to pay other bills so I can keep my mortgage. I now have no choice but to default. I owe more than the house is worth.
HSBC is not part of the bail out programs as other banks. What the government has forced most banks to do HSBC was already doing. We all get into financial difficulties however don’t wait until your so far behind before you request help. HSBC sends letters lending offering a helping hand…many letters are ignored..most people state they never receive them or just toss it aside and never open the mail. HSBC lowers interest rates without people’s request. Every company has departments that have purposes and speaking directly to people you may want to is not at your discretion. The economy is bad… not just to you, not just your state and not just in America. HSBC is a global company so applications are received by the thousands. Applications are received from people who are unemployeed, spouses have died to people that make over 250,000 a year and still want a modification …all are reviewed!!!! Documentation is minumal…non required if over 30 days past due past…taking your word. Even after approving the modification customers are called to inform and approval letters are sent out but most people don’t find out…why??? your too busy trying to avoid the calls. Loan modifications are done to help save your home not reduce your mortgage payments so you can drive your fancy cars, go on your vactions and pay your credit card debt..Your mortgage should be your first priorty not your last… people are jumping on the bag wagon and no one is paying their mortgages because what the neighbor told you…the neighbor wasn’t there when you signed your loan papers. Stop bashing the mortgage company’s when most of you signed loans for big houses that you really couldn’t afford anyway…you want to live outside your means, walk away with high intrest rate loans and then blame the mortgage company …remember when you point one finger four are pointing back at you.
it is just to confusing to find useful informations .
Instead of help those websites will make you more confuse ,than before .Too many predatory websites.
I used to work for HSBC Loss mitigation dept and can pretty much guarantee an HSBC loan modification. All I used to do is deal with modifications. I have since left and started my own modification company. If you want to contact me you can reach me at 800 975 3198 x 510. Trust me they don’t care about their borrowers as much as they say when you call. They coach employees on how to deal with you physcologiacally and how to acknowledge you and deal with your emotions rather than bend over backwards to help you.
2000 got the house. 2004 refi with Ameriquest. Then HSBC sent letter to us they purchased the loan and is servicing since then. HSBC is a royal pain…and a master of misinformation…
Now that we are requesting loan modification, they are claiming that my lender is private and will not further modify may loan.. Told them that what they gave me is not a modification, but only an instruction from them. We never signed any written agreement of the modification since we do not agree with this direction so this is not suppose for be binding. They gave us temporary 6 months 5.25% that will knock down about $80.00 off our original monthly payment…Wow!!! not even enough to buy my medicine and sanitary napkins!!!
They are insisting they can not do anything… now my house is in default recorded in 11-25-09 and tentatively by 2-25-10 is the sale date. HELP!!!
Thanks a mil!
Bob