HSBC Nightmare - Need Help!

[chris425]

Hi to all, Last year we made the mistake of buying a home without selling the home we were in. We were hopeful that it would sell right away and needless to say it didn't.....so a full year has gone by with 2 house payments.

Well we finally have an offer but are facing a major problem. Our first mortgage on this house is through Countrywide (we owe $45,000). We also have a home equity loan through HSBC (we owe $20,000).
Since putting our house up for sale we have learned that it has some major problems and as time has gone by we started at $75,000 and am now down to $45,000. We are desperate to sell it and are financially ruined at this point.

The offer is for $45,000. Since we will only be getting $45,000 HSBC will not be getting anything on this sale.

About 2 1/2 months ago (when we first accepted the offer) we talked to HSBC and they said we could convert it to a personal loan. We filled out all the financial information we needed and sent it off right away. Well two weeks ago (2 days before closing), we find out that HSBC will not release the second lien unless we pay $1,000.

Well we just don't have a $1,000...we are broke. We have made endless calls to the HSBC representative handling this, but she has never called back. Our lawyer has called but he hasn't had any luck. We have told Countrywide but they have said there is nothing they can do.

If this deal falls through we will have to give the house back to Countrywide because we can't make the payments any longer.

Does anyone have any ideas, or no of someone I can contact? We are just desperate.

[chris425]

Boy I must be tired! It's HFC and not HSBC....I have HSBC on the brain!

Welcome to the forum and thank you for joining.

HFC as one party on this forum said is one step up from thugs and leg breakers, has your attorney expressed and explained that his is just not an option, no funds are available and that if the deal falls through then they will not get a personal note unsecured or not....that you will ---- make sure that they do not get one red cent...ever, again. What state are you in?

I understand how stressful this is, but your attorney may need to play hard ball with them, compel them to understand that the deal they are getting is the best there is and the alternative is really not going to be to their liking.

Please let me know what state you are in.

[chris425]

We are in Iowa.

Our attorney did make it clear that we don't have the extra money but they said they weren't going to back down on the $1,000.

I do hope that you have not signed anything with HFC...let them stew in their own juices...creeps.

Here is Iowa Foreclosure Law, check with your attorney but apparently according to this there are no deficiency judgments.....so if that is the case and your credit is already tanked, by the way it takes 4 years from Foreclosure prior to really being able to get another solid mortgage loan...but you already have another house.....being an underwriter I know foreclosure affect/effect to credit rather well and after 4 years....the situation is considered "not of material concern". So speak with your attorney....if you have not signed anything. I hate to tell you what I would do if they are that ignorant.

Iowa Foreclosure Law

Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Typically 150
- Right of Redemption: No
- Deficiency Judgments Allowed: No
In Iowa, lenders may foreclose on a mortgage in default using either the judicial or the alternative non-judicial foreclosure process.

Judicial Foreclosure
The judicial foreclosure process is one in which the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. Generally, if the court finds the borrower in default, they will give them a set period of time to pay the delinquent amount, plus costs. If the borrower does not pay within the set period of time, the court will then order the property to be sold.

Notice of the sale must be posted in at least three public places of the county, one of which shall be at the county courthouse. In addition, there shall be two weekly publications of such notice in some newspaper printed in the county, with the first publication being at least four weeks before the date of sale, and the second at a later time before the date of sale. If the borrower is in actual occupation and possession of the property, the notice must be served on them at least twenty days prior to the date of the sale.

The sale must be at public auction, between 9:00 am and 4:00 pm and the time must be stated clearly in the notice of sale. The sheriff shall receive and give a receipt for a sealed written bid submitted prior to the public auction. The sheriff may require all sealed written bids to be accompanied by payment of any fees required to be paid at the public auction by the purchaser, to be returned if the person submitting the sealed written bid is not the purchaser. The sheriff must keep all written bids sealed until the commencement of the public auction, at which time the sheriff will open and announce the written bids as though made in person.

The sale may be postponed, but if it postponed for more than three days, notice of the new sale must be publicly announced at the time the sale was to have been made.

Alternative non-judicial foreclosure procedure

Borrowers in Iowa have the option of avoiding a foreclosure suit by voluntarily conveying all of their rights in the property secured by the mortgage to the lender. If the lender accepts the conveyance from the borrower, they are given immediate access to the property. However, they must waive any rights to file for a deficiency judgment against the borrower.

Additionally, the borrower is required to sign a "disclosure of notice and cancellation", which states, among other things, that they are voluntarily giving up their rights to reclaim or occupy the property. The borrower and lender must also file a jointly executed document with the county recorders office stating that they have chosen to proceed with the foreclosure using the voluntary foreclosure procedures.

Oh your attorney could point this out to them, that they can come to the table and partake courteously and have a meal, or go hungry.