some success against hsbc mortgage

[oscar ferguson]

Hello everyone this is the first story Im posting I, hope Im doing this correctly. I found this website browsing the internet, while I was looking for a lawyer or a non for profit organization to help me with a modification of my mortgage with hsbc mortgage company. In 2006 my back was against the wall and I wanted to refinance my first mortgage with citi and leave my 2nd mortgage alone. After countless hours of research I found out no lender was willing to be in second position. so I found a investment company who was willing to refianance my first and second mortgage. They sold me on an adjustable rate mortgage at 9.1 percent telling me I can refianance. ( My credit was not the greatest). Its a 3 year arm thats scheduled to adjust august 2009. I tried to refianance with fha in 2008 and I was told I owe more than my property is worth. So my loan was denied. I have a mortgage of 2036 and thats not including taxes and insurance (Im behind on my property taxes).In August 2008 my wife lost her income and I called hsbc mortgage 1800-333-7023 and asked to speak to their modification department. I spoke with a rep. and she took some financial information over the phone. I had to fax her one month statement of my checking account and two pay stubs. In two weeks I recieved a response stating Im approved for a 6 month modification at 5.25 percent and that after the 5th month if my situation still exists I can apply for a extension. Well 5 months later (mod. started in oct. 08 to feb 09) I called for an extension and I was told I had to make 6 months of mortgage payments before I can be considered for an extenstion. (I called feb. 15, 09 ) Ive been paying my mortgage due financial strain on the 30th of every month. I didnt want to wait until the 30th so I did what I had to do to scrape up the mortgage payment. On Feb 27th I got an answer and I was approved for the extension for 18 months for the same 5.25 percent my payments are now 1411.85 I still have a problem with my property taxes. Im behind two years. The last week Ive been searching the internet to see if there is somehow I can get a permanent Modification because hsbc does not want to approve a permanent Modification. I called a couple of organizations and a couple of lawyers and I found one who was willing to look at my mortgage note to see if there are any errors (free consultation) and he found a truth in lending disclousure error. I was told I could recind the loan. However property values are horrible so I woudnt be in my best interest to rescind however Im hoping I can have more negotiating power with hsbc for a permanent modification before my loan adjusts. Now I have to deal with my deliquent property taxes. I called hsbc and they said they will step in and pay the deliquent taxes however they will charge me a month for 12 months. That could be 1000 a month plus my mortgage payment more than the original mortgage amount. I asked if they could place the taxes to the back of the loan and they said no. If any one has any suggestions to my situation please feel free to advise me thanks, and this is a wonderful website to give people hope.

[Justin S.]

Welcome to the forum Oscar.


Have you talked to your tax assessor about your situation? In these difficult times, many states and counties are willing to work out a payment plan. Good luck with that and congratulations on negotiating an affordable payment, even if it's temporary. Don't give up!


Justin Shields
Legal Assistant
Law Offices of Fransen and Molinaro
Phone 888-432-6634 ex.254

[oscar ferguson]

Hi, Justin thanks for the reply. I will call the my tax assessor. I recieved a document from Hsbc stating the terms of my modification dated 03-27-09. The payment should be 1411, however the letter states my new payment will be 1647. I called Hsbc and requested them to verify 5.25 on my principle balance and it came out to 1411. The rep. stated they are not escrowing any extra payment. I was then told that it was an error and he will send out the corrected doc. in a couple days. IM LEARNING, NEVER SIGN ANYTHING WITH OUT INVESTIGATING . We will see what happens. I hope my threatned lawsuit will help me for a permanent modification.

[Justin S.]

Good for you! Stay tough with them and DEFINATELY read what you are signing. You are not the first to find errors in the agreement. Feel free to contact me if you need any further help.

Regards,

Justin Shields
Legal Assistant
Law Offices of Fransen and Molinaro
Phone 888-432-6634 ex.254
justin@modifyloan.net

[oscar ferguson]

Hi, Justin I just wanted to let you know what happened with hsbc. I called them when I recieved a fed ex with my extended modification. It had an error in the amount. I was told by hsbc that it was an error and I will recieve an updated letter with the correct amount. Im still waiting. I have a question I wanted to know if I could recieve a 5 year modification through a recent fed. program. I was told by hsbc that they do not participate in this fed program. and that after my temp. modification if my situation exists I can re apply for another extension. I thought the banks have to comply with the fed. program, and how do I apply for it if my lawsuit fails. Any feedback helps.

[Justin S.]

Unfortunately, the banks are not mandated to use the fed. program, but are incentivized monetarily if they do use the program to modify mortgages. You may have to take the temp. mod and re-apply if your financial situation is the same at that time, and hope that they implement a new program that will give you something more permanent. I wish I could tell you something better, but keep on fighting. You never know when they will come out with something more beneficial.

[oscar ferguson]

Hey Justin thanks for all your replies. I need your advice for this situation, please. I recieved a call from a mortgage company, and the rep. stated to me that there is a new program fed. funded that can help home owners if there mortgage is upside down. Im upside down about 50,ooo. He said he has 3 customers with hsbc mortgages and recieved success with all 3. He says after he gets the principle reduction, then I could refiance into a fixed 30 year mortgage. The only problems I have are, my credit is shot, Im upside down, and he wants money up front to get the process started. My mortgage is not backed by freddie may or fannie mack. Hsbc mortgage services my loan. Any advice would be greatly appreciated.

[Dan Bailey]

oscar,

Stay away from any company that calls and solicits you with promises like that. There are alot of vultures out there and our records are public knowledge. They prey on folks who are in need.

[Justin S.]

Oscar, it sounds like a typical scam to me. If they are asking for an up front fee, did they tell you if they were approved by the DRE to do so? If you find out that they are not above board, you might want to let us know the name of the company so that others will be aware to stay clear.

[oscar ferguson]

Hi thanks for the replies, Justin and Dan. Justin what is the dre, and in your opinion can a principal reduction be possible and who should I go with. My property value has gone down. I cant refinance and now I have poor credit. Any advice would be greatly appreciated.