Question about offer from HSBC through NACA

[sjungman]

I recently began working with NACA and I just received a proposal from HSBC. Here are the terms:

Original Terms
Principal: 303,719
Interest: 8.7%
Payment not including taxes/ins: $2505

Proposed Restructure
Principal: 303,719
Interest: 3%
Payment including taxes/ins: $958

The details say that this will require a PB deferral with a 3 month trial period. If all required payments (3) are received on time, the Permanent Modification will begin with the January payment.

Can you tell me what a PB deferral is?

This actually seems too good to be true. These are the exact terms that NACA asked for and it is the first time it has been submitted.

What do you think?

Thanks for your help!!

 

[Evan Bedard]

The details say that this will require a PB deferral with a 3 month trial period. If all required payments (3) are received on time, the Permanent Modification will begin with the January payment.

Can you tell me what a PB deferral is?

This actually seems too good to be true. These are the exact terms that NACA asked for and it is the first time it has been submitted.

What do you think?

I'm glad to see NACA was able to help you achieve the modification! Your interest rate is phenomenal and can't get any lower than that! A PB deferral means that a portion of your "principal balance" has been deferred and this amount is non-interest bearing and non-amortizing. This will ultimately result in a balloon payment fully due and payable upon the earliest of the borrower’s transfer of the property, payoff of the loan or at maturity.I'm not sure how far you were behind when you received this offer, but they may have deferred close to $100K based off the numbers above.

 

[sjungman]

Thanks for responding. Do you have any idea on the NACA process now that we have been approved for a modification? I haven't actually talked to a person since I submitted my application so I am not sure what to do next. I am still a little cautious about being too excited. I really want to see this in writing!

 

[sjungman]

Well we made the three trial payments on time. We received the escrow analysis last week so we thought that was a good sign we would be getting details about the permanent modification. I called today to schedule the January payment and found out that we now have a new loan servicer. We have to contact Caliber Home Loans for more information.
Does this mean we will have to start over?

 

[Evan Bedard]

You should not need to restart the process because your loan has been been transferred to a new servicer. This is very common in the mortgage industry, but unfortunately this may cause a 30+ day delay before the final modification is rendered. Contact HSBC immediately to inquire about the permanent modification and ensure all details of the agreement have been transferred over to Caliber Home Loans.

 

[sjungman]

Thanks for responding. I talked to someone at HSBC and it sounds like the modification will be permanent before the transfer. Hopefully that is what will happen!

 

[amyjeans]

Oh My GOsh! please please sjungman, is there any way you can provide documentation to support this? we are in foreclosure with HSBC and they turned us down at every turn-no mod, they want deed in lieu and want to break all the rules for mediation in CT. please- this could be the hope we have been looking for! If no documentation- what about a contact number?
thank you!

 

[LovingOcwen]

Thanks for responding. Do you have any idea on the NACA process now that we have been approved for a modification? I haven't actually talked to a person since I submitted my application so I am not sure what to do next. I am still a little cautious about being too excited. I really want to see this in writing!

Hi sjungman,

I also went through Naca, so you do not have to do anything with Naca but abide by your 3 month trial modification. Did you receive paperwork from your bank? Naca was my middle person between me and my servicer, since I kept getting the runaround abt my servicer not receiving my documents. I did send Naca a thank you email. How did you find out about your trial? I was contacted by Ocwen and then naca called to confirm.When I check my webfile on the Naca site the terms was there.

 

[sjungman]

HSBC turned us down for everything until we started working with NACA. I went to a workshop in Atlanta in June. I met with an advisor in the Atlanta office in July. He submitted all of the paperwork that day. We received the initial modification offer at the end of August. We made 3 trial payments in October, November, and December. We are waiting for final paperwork.
The first thing you have to do is go to a NACA workshop. I don't know how they got HSBC to work with us, but they did!

 

[sjungman]

Hi sjungman,

I also went through Naca, so you do not have to do anything with Naca but abide by your 3 month trial modification. Did you receive paperwork from your bank? Naca was my middle person between me and my servicer, since I kept getting the runaround abt my servicer not receiving my documents. I did send Naca a thank you email. How did you find out about your trial? I was contacted by Ocwen and then naca called to confirm.When I check my webfile on the Naca site the terms was there.

Thanks for the info. I have been keeping up with my naca file to find any new information. That is where I found the trial info. We are in Chapter 7 so HSBC won't contact us with any information at all. I call them about every 10 days to make sure I am not missing anything.

 

[sjungman]

Hi sjungman,

I also went through Naca, so you do not have to do anything with Naca but abide by your 3 month trial modification. Did you receive paperwork from your bank? Naca was my middle person between me and my servicer, since I kept getting the runaround abt my servicer not receiving my documents. I did send Naca a thank you email. How did you find out about your trial? I was contacted by Ocwen and then naca called to confirm.When I check my webfile on the Naca site the terms was there.

Oh My GOsh! please please sjungman, is there any way you can provide documentation to support this? we are in foreclosure with HSBC and they turned us down at every turn-no mod, they want deed in lieu and want to break all the rules for mediation in CT. please- this could be the hope we have been looking for! If no documentation- what about a contact number?
thank you!

Sorry, I responded but I forgot to add your post so you know it was for you! We tried for two years to get help from HSBC with no luck at all. Once I met with the NACA advisor we had an offer to restructure the loan in about 60 days. Have you been to a NACA workshop?

 

[amyjeans]

Sorry, I responded but I forgot to add your post so you know it was for you! We tried for two years to get help from HSBC with no luck at all. Once I met with the NACA advisor we had an offer to restructure the loan in about 60 days. Have you been to a NACA workshop?

We haven't yet. I filled out the info online for them, but didn't go through with it because I didn't know how it worked. I will call them tomorrow-definitely.

 

[sjungman]

We haven't yet. I filled out the info online for them, but didn't go through with it because I didn't know how it worked. I will call them tomorrow-definitely.

From what I remember, you will need to go to a workshop or some type of event before you can schedule an appt. I would go to naca.com to see what events are planned. At the workshop, I set up my appointment and it moved very quickly from there. I have heard that the big events are very successful and they can actually accomplishment all of the steps in one day. I am still amazed by what they did for us.
Good luck!

Sandy

 

[LovingOcwen]

Sorry, I responded but I forgot to add your post so you know it was for you! We tried for two years to get help from HSBC with no luck at all. Once I met with the NACA advisor we had an offer to restructure the loan in about 60 days. Have you been to a NACA workshop?

I realized that..LOL Actually I never been to a workshop. I went online followed the directions and just took it from there.

 

[sjungman]

Update on HSBC modification and transfer to Caliber

I recently began working with NACA and I just received a proposal from HSBC. Here are the terms:

Original Terms
Principal: 303,719
Interest: 8.7%
Payment not including taxes/ins: $2505

Proposed Restructure
Principal: 303,719
Interest: 3%
Payment including taxes/ins: $958

The details say that this will require a PB deferral with a 3 month trial period. If all required payments (3) are received on time, the Permanent Modification will begin with the January payment.

Can you tell me what a PB deferral is?

This actually seems too good to be true. These are the exact terms that NACA asked for and it is the first time it has been submitted.

What do you think?

Thanks for your help!!

We finally received some information from Caliber. The modification did transfer and we had some great news in the process. Our principal balance before the modification was just over $300,000. Our new principal balance after the modification is $155,000!
We were under the impression that there would be a principal deferment, but somewhere that changed and they reduced the principal instead.
One problem we are still having is the past due amount. HSBC had reaged the account bringing the account current with no past due balance. Somewhere in the transfer that reaging disappeared and we now have a past due balance of about $10,000.
We are continuing to make payments and trying to get Caliber to work with us on that amount. I have the letter from HSBC explaining the reaging of the account. We are faxing all documentation to Caliber in hopes they will honor that!

 

[Elsker-meg]

That is totally awesome!!! I am so glad that NACA was able to assist you where they were not able to assist me with HSBC. And to hear that caliber will more than likely honor it is a double bonus!!! CONGRATS

 

[lwillhite]

Hello sjungman,

Congratulations on the modification and the successful transfer to Caliber. Did they straighten out the past due amount?

Tim Trumble
Online Operations, NACA
[email protected]