Home Loans and Support

HFC Short Sale

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by pmontana, Apr 23, 2008.

  1. pmontana

    pmontana LoanSafe Member

    Hello everyone, great website from what I've seen so far... :D

    Here's my story...
    I currently have an HFC 1st ($95K) and 2nd ($20K) mortgage and a HFC Powerline of Credit ($10K). I originally had an HSBC mortage when my wife and I first bought the house in 2002 but refi'd with HFC in 2005 after we needed some extra money to pay off mounting credit card debt which was probably our biggest mistake. The 2nd mortgage and PLoC were also used for this purpose years later so I'm in the hole to HFC for about $125K.

    For the last 10 months or so, we've been having problems paying bills after the birth of our 2nd child. We ALWAYS make sure our HFC payments are paid in full (1st and 2nd mortgage are auto-pay) and on time but something has to give so credit card bills and utility bills are often late.

    After sitting down with a bankruptcy attorney in December, I got a surprise bonus from work so that temporarily cancelled the need for a bankruptcy and allowed us to pay back creditors and utility companies. A 401k loan (another bad decision) and our tax refund have gotten us to April but that money has all but run out.

    When all is said and done, we're about -$500 every month and have put all of our remaining credit cards in a debt management program with a local reputable company.

    My in-laws gave us the option to move into my wife's grandmothers house rent free (grandma is in a nursing home) just paying for utilities and property/school taxes. We'd use the money we're giving to HFC now to pay down our existing debt quicker. We jumped at the opportunity and are in the process of hopefully selling our home. :(

    After being on the market almost 3 weeks, we received and accepted a purchase offer today but that's for $104K and as I said before we're in the hole with HFC for $125K. My realtor who's talking to HFC on our behalf has already started down the path of a short sale but they haven't been very responsive and have been very rude to the point where our realtor is getting rather frustrated.

    We are submitting a number of collaterals (paystubs, tax returns, bank statements) and a hardship letter but from my realtor's preliminary talks it sounds like they aren't that open to a short sale.

    I guess I wanted to see if anyone had any advice or gotchas so I don't get the wool pulled over my eyes.

    Can HFC make my life a living hell by refusing to release the lein on my property? :confused:

    Obviously the PLoC was an unsecured loan so I'd expect to continue to pay that post closing but I would really love to have the 2nd mortgage off of our plate.

    Thanks in advance for the help! I'll keep everyone posted on my beginning saga with HFC if you're interested... Hopefully it will have a happy ending! :p
  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Thanks for joining the community!

    This is very common and frustrating. Sometimes these loss mitigation people just do not get it and end up hurting the companies they work for more than helping.:mad:

    They are just playing their normal games. This is the same song and dance they play with every one. Its as if they are operating back in the twilight zone. What can we do? Just keep calling and fighting, thats all.

    Yes they can. You may want to check your states laws etc. A foreclosure might end being better or than same as a short sale. Talk with an attorney also. There is a misconception that a short sale is a lot better than a foreclosure. Well, depends on several factors and most Realtors are clueless to this.

    Not very knowledgeable on this. Have you explored bankruptcy has a means to take care of this debt.

    Yes, please keep us up to date on your progress and any question you may have.

    Remember no one will fight like you will. So keep getting educated and be the greasy wheel;)
  3. aifanejr

    aifanejr LoanSafe Member

    Hi there!

    I, too, am hoping for a short sale with HFC. We don't have an offer yet (OH PLEASE!!), but when we receive one we have a realtor and a team of negotiators. The negotiators get paid like the realtor (not by us) and it is their job to deal with all the paperwork and all of the calling and calling. Plus, these people have relationships with the various banks. My suggestion to you is that you try to find a group like that where you live. (But- make sure it costs you nothing!)

    Having said that, HFC does really seem to be horrible and my husband and I are steeling ourselves for possible foreclosure.

    Congratulations on receiving an offer so quickly and good luck!
  4. pmontana

    pmontana LoanSafe Member

    When I went to our bank yesterday to have our HFC short sale documents notarized prior to sending them, the notary said "Congratulations on getting rid of Beneficial/HFC". :eek:

    After I told her this was paperwork for a short sale, she said "Good Luck!"

    Am I the only one who didn't know how horrible HFC was? :rolleyes:
  5. arlus5

    arlus5 LoanSafe Member

    Yes, please keep updating on your progress! I'm extremely interested in how it plays out since you're way ahead of us in your progress. Almost everything regarding your situation is identical to ours. We have a 1st, 2nd and Personal line of credit with HfC/beneficial. We're still paying on the PLoC (as part of a debt management program), but have not paid the 1st & 2nd since February. We've been running in the red about $1100/mo for over a year. We maxed every credit card we could obtain, the PLoC, and zapped my husband's Thrift Savings (retirement) investment. Like you, we spent every tax refund to pay something off, only to charge them right back up within a few months. AND borrowing from family! We requested a refi last year since our interest was so high, but because of their origination fees, our Loan to Value was too high to refi. We entered a debt management program in Jan. to get a handle on our credit card debt which was at sky high interest rates. We didn't negotiate a reduction in principal, just negotiated a lower interest rate and will have them all paid in full within 30 months (but no more charging!!!)

    Without any available credit to absorb the deficit each month and the retirement account drained, we immediately realized that we needed to take some action. We contacted HFC before we were ever late because we could see that there was no way we could pay everything. In trying to be proactive and work out a plan before our credit suffered, we were flatly denied and told "we can't do anything until you've missed a payment". I couldn't believe they were serious in ENCOURAGING us to fall behind.

    We missed our 1st payment in March, and the collection calls started immediately after the grace period. We consulted an attorney who advised us that if we knew we would be unable to pay in the future, we should contact HFC's loss mitigation to request a deed in lieu (DIL). We did this and were told that they WOULD do this contingent upon an interior inspection and clear title, but that we would have to vacate the property by the end of the month. Fortunately, we verified this through the attorney who instructed us not to budge until we had received their terms in writing. When we requested this in writing, they stated that their lawyers would draw up the terms AFTER the inspection and title check (at our expense) and the mitigation specialist assigned to us would be calling to schedule these. As is typical, I still have received no such call and I only get voice mail when I've called to speak with this "specialist". Only their collections department is contacting us (For the record, their collections department is staffed with the most vile individiuals I've ever had the misfortune of dealing with).

    Since we're making ZERO progress we just signed with a realtor (with short sale experience) TODAY to list our home. So I'd like to know what the future holds. Any experience you have with them, no matter how insignificant, would interest me. I'd like to go into this with as much knowledge as possible and the benefit of your experience will help.

    We have truly tried every avenue to avoid the position we're currently in. I don't take lightly the fact that I'm losing my home, not just for myself, but for our whole family and that we're in a credit disaster that may take years to recover from. I didn't expect HFC to wrap their arms around me and comfort me through this, but I didn't expect them to be completely disagreeable and inaccessible when we tried in good faith to work out a program with them to avoid this whole mess.

    I sympathize with what you're going through and wish you the very best.
  6. pmontana

    pmontana LoanSafe Member

    Well just to give everyone an update...

    We assembled the packet of information that HFC wanted and my real estate agent mailed it in to the address he was given by HFC. We were told they would need 3 weeks to process the information then they would get back to us.

    My agent called 3.5 weeks later to check on the status and they claim to have never received the package. When questioned about the address he sent it to, my agent responded with the correct address. The HFC agent then told him that he usually doesn't get mail correctly delivered to him unless it's overnighted, an important detail you think he might have mentioned before. :mad:

    And to top it off, he asked for 2 additional forms that he previously said we didn't need, one being a HUD-1A form.

    So my agent re-assembled the package, overnighted it to him with delivery confirmation and called the next day to verify he received it. His 3 week processing time also dropped down to a more reasonable 2 - 3 days so he says.

    Well the package got there last Friday May 23rd. Given they had Monday off I would expect an answer any day now (I hope). ;)

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