BNC, Accredited and Green Point Bite the Subprime Dust

[Moe Bedard]

Another eventful week on the mortgage front and another big 3 subprime lenders bit the proverbial subprime dust. BNC, Green Point and Accredited closed shop and add to the list of 150 plus lenders that are out of business.

The closing of BNC Mortgage comes as the nonbank mortgage industry implodes. Dozens of subprime lenders that were cashing in big time by lending money to borrowers with less-than-stellar credit histories have closed up shop as a result of rising delinquencies and defaults in so-called subprime loans.

Whos' next?

[FIRSTIMEBUYER]

Moe:

What happens to your loan when the lender goes out of business??
Who owns your loan then??

In other subject I just received a letter from HSBC to notify me that my rate is going to reset in October. My loan will increase $ 650.00 for six months and then will reset again.
I am ready to request a loan modification for my loan since I will not be able to afford the new loan.
Do you think HSBC will take my application for a modification even if I have not been late on my payments?

Thanks for your help

[Moe Bedard]

I would definitely seek a loan modification before the reset or your rate. You have nothing to lose and everything to gain. Tell them you just got the letter and you will not be able to afford that payment. Demand in a nice way to apply for a loan modification.

Best of luck and please, please let us know how it goes or if you need any help!

[chargersbaby]

GOOD LUCK! WE HAVE BEEN TRYING TO WORK WITH THEM FOR A MONTH, YOU EITHER CANT GET A HOLD OF THEM, OR THEY LIE AS USUAL TELLING YOU THEY WILL SEND YOU AN "OFFER OF NEW TERMS" BS..NEVER GOT ANYTHING! OR THEY TELL YOU TO SEND DOCUMENTATION YOU SEND IT THEY SAY ITS GOOD ENOUGH.. TELL YOU TO CALL BACK IN 4 DAYS... THE PERSON YOU ARE SUPPOSED TO CALL IS OOTO AND HAS NO VOICEMAIL AND YET NO ONE ELSE CAN HELP! YOU FINALLY GET A HOLD AFTER DAYS OF CALLING AND THEN THEY SAY THE DOCUMENTATION AFTERALL WASNT ENOUGH AND TO SEND MORE... THEY DO THIS OVER AND OVER WAITING FOR YOU TO DEFAULT TO FORCLOSE... NO MATTER WHAT THEY SAY THEY WANT YOU TO LOOSE YOUR HOME! HSBC ARE A BUNCH OF LIARS AND QUAKS!

Originally Posted by FIRSTIMEBUYER

Moe:

What happens to your loan when the lender goes out of business??
Who owns your loan then??

In other subject I just received a letter from HSBC to notify me that my rate is going to reset in October. My loan will increase $ 650.00 for six months and then will reset again.
I am ready to request a loan modification for my loan since I will not be able to afford the new loan.
Do you think HSBC will take my application for a modification even if I have not been late on my payments?

Thanks for your help

[evel1999]

Your loan will be sold to another if the lender goes out of business.

Apply for a loan modification even tho you are not late. Just the loan reset is reason enough to try to get out of this ARM. Most of time the only way out if for them to modify the loan.

Yes they want to make you late on payments and try to collect as many fees from you as they can.

But apply for the loan modification as for most of us this is the only answer to this problem ARM.