HSBC Advice on Hardship Denial?

[ttby4444]

First I would like to say this forum is amazing! I have done some research on here and it seems like there are allot of people in a similar situation as I am. I was however unable to find an exact match so I figured I'd post a question.

First the background. 8.7% mortgage, upside down by at least 40-50K. Been a loyal on time customer of HSBC. Had a child last year and things are getting tight, really tight. I can still make my monthly payments but because of the high payment, I have maxed my credit cards, and obviously have NO savings. To top it off to try and stay above water I canceled my 401k. So before I start missing or being late on my mortgage I wanted to see about a rate adjustment. This was my intention 4 years ago. I didn't have much money to put down on my home so I took the higher rate assuming I could refinance for showing a good history of payments.

Now I understand others are worse off than I am, with medical, and job loss but I am a little ticked off at the fact that the woman on the phone told me that I should consider bankruptcy. She mentioned that the credit cards do no play into my hardship request because its a lifestyle debt or something like that. She mentioned that we have a surplus of funds without the credit card and personal loans but with the loans included I only have a $207 monthly surplus. Is this to high in order to be denied?

Is this true that I can't include my credit card debt in my loan modification request? I mean I wouldn't have the credit card debt if I was able to save money on my mortgage.

Has anyone had a similar experienced with HSBC. The women on the phone was extremely rude and not really helpful at all.
Looking for some advice.
Thanks

[Virginia123]

Hi, yes HSBC (HSBC/Beneficial) is difficult to deal with. They gave us a loan mod back in Sept of 2008 for 6 months very easily when we tried a second time (March 2009) we were denied because they said we had too much disposable income even though NOTHING had changed since the last time we had recieved a modification. They do not include credit card debt or auto loan payments in their modification decision.

We are in the same position as you, had to use credit cards because our payment is so high we can't even afford to go to the doctor without using a credit card, that's a pretty tight budget and our rate is 10.24%.

I am back on the warpath again. I'm going to try again for a loan mod since finally our two years is up for the prepayment penalty, we tried to refinance but can't because we owe too much on our house. We are at least 30K upside down.

Just keep trying is all I can say...