HSBC Watch News Release Forum Index
Forum Name: - Past settlements
Topic Title: Take the Mortgage or Go To Foreclosure
Fri Nov 19, 2004 12:16 pm
I am still very much in the thick of it with this company. I was told by the Attorney General's office that I did not qualify for the settlement action as my loans were originated with the Household Corporate Office and not the specified "branch" office.
In May of 2003, Household contacted me and stated that they were rewriting my loans into one and that my interest rate and balance would be reduced. I asked the loan officer what the interest rate would be and I was told probably around 8%. Of course, I was thrilled. When I arrived in the office, I had to wait for 4 hours, being given excuses such as the computer systems were down and they needed the rest of the loan documents, etc.
When all was said and done, they stated that the loan origination office had reworked the terms of the loan, but I was lucky to get it because of my credit standing and payment history - I better jump on it because the company doesn't normally do this kind of negotiation.
Instead of the 1st loan of $181000 at 11.6% and the HELOC of $31000 at 17.9%; I was given a loan of $222300 ($212000 being the combined total of both loans) at 10.57%, still no escrow of course and a monthly payment of $2045 (the other payments combined were $2131). I was told that I didn't have to sign this but if I didn't I would most likely go into foreclosure.
I was scared and signed, as this entire situation occurred because of a divorce in which I had to absorb all of the debt in lieu of alimony and I support my 14 year old daughter. Later I find out that the monthly payment isn't enough to cover the interest and I therefore have a deferred interest balance. This was not discussed or disclosed. I was told that if I made timely payments for one year; they would reward me with a 1/2% rate reduction.
I have had a rolling late since the loan inception, after 1 1/2 years of this loan my balance is $220300 with a deferred interest balance of $9000. This loan was based on a house value of $172000. Housing in my area is booming, however, I am still unable to refinance out of this loan because of my equity position. I have been approved by Champion Mortgage, despite my credit rating (high of 490) and debt to income ratio; however, my home appraises at $250000, not enough to refinance due to debt to income.
I don't qualify for any assistance with Household because I make too much money and "should be able to handle my finances better." My annual property tax is $2016, insurance is $700 and ground rent is $120. I clear $2054 every 2 weeks, I have divorce debt with a debt management plan that runs $456 per month a car payment of $566 due to the high interest rate and utilities that equal $600 per month. Saving for the escrow is impossible because I don't have the extra $236 per month to use.
I am in total financial ruin, I don't believe in bankruptcy, I am terrified of foreclosure and I may just lose my job due to my credit situation. My job requires me to hold a Top Secret security clearance, a big portion of which is based on your credit situation. I make very good money; I have worked for the Feds for over 12 years and I have absolutely nowhere to turn.
I know we spoke before. Do you have any suggestions, besides throwing in the towel?
Sat Nov 20, 2004 8:57 pm
ML in Maryland wrote:
I am still very much in the thick of it with this company. I was told by the Attorney General's office that I did not qualify for the settlement action as my loans were originated with the Household Corporate Office and not the specified "branch" office.
In May of 2003, Household contacted me and stated that they were rewriting my loans into one and that my interest rate and balance would be reduced. I asked the loan officer what the interest rate would be and I was told probably around 8%. Of course, I was thrilled. When I arrived in the office, I had to wait for 4 hours, being given excuses such as the computer systems were down and they needed the rest of the loan documents, etc.
When all was said and done, they stated that the loan origination office had reworked the terms of the loan, but I was lucky to get it because of my credit standing and payment history - I better jump on it because the company doesn't normally do this kind of negotiation.
Instead of the 1st loan of $181000 at 11.6% and the HELOC of $31000 at 17.9%; I was given a loan of $222300 ($212000 being the combined total of both loans) at 10.57%, still no escrow of course and a monthly payment of $2045 (the other payments combined were $2131). I was told that I didn't have to sign this but if I didn't I would most likely go into foreclosure.
I was scared and signed, as this entire situation occurred because of a divorce in which I had to absorb all of the debt in lieu of alimony and I support my 14 year old daughter. Later I find out that the monthly payment isn't enough to cover the interest and I therefore have a deferred interest balance. This was not discussed or disclosed. I was told that if I made timely payments for one year; they would reward me with a 1/2% rate reduction.
I have had a rolling late since the loan inception, after 1 1/2 years of this loan my balance is $220300 with a deferred interest balance of $9000. This loan was based on a house value of $172000. Housing in my area is booming, however, I am still unable to refinance out of this loan because of my equity position. I have been approved by Champion Mortgage, despite my credit rating (high of 490) and debt to income ratio; however, my home appraises at $250000, not enough to refinance due to debt to income.
I don't qualify for any assistance with Household because I make too much money and "should be able to handle my finances better." My annual property tax is $2016, insurance is $700 and ground rent is $120. I clear $2054 every 2 weeks, I have divorce debt with a debt management plan that runs $456 per month a car payment of $566 due to the high interest rate and utilities that equal $600 per month. Saving for the escrow is impossible because I don't have the extra $236 per month to use.
I am in total financial ruin, I don't believe in bankruptcy, I am terrified of foreclosure and I may just lose my job due to my credit situation. My job requires me to hold a Top Secret security clearance, a big portion of which is based on your credit situation. I make very good money; I have worked for the Feds for over 12 years and I have absolutely nowhere to turn.
I know we spoke before. Do you have any suggestions, besides throwing in the towel?
In May of 2003, Household contacted me and stated that they were rewriting my loans into one and that my interest rate and balance would be reduced. I asked the loan officer what the interest rate would be and I was told probably around 8%. Of course, I was thrilled. When I arrived in the office, I had to wait for 4 hours, being given excuses such as the computer systems were down and they needed the rest of the loan documents, etc.
When all was said and done, they stated that the loan origination office had reworked the terms of the loan, but I was lucky to get it because of my credit standing and payment history - I better jump on it because the company doesn't normally do this kind of negotiation.
Instead of the 1st loan of $181000 at 11.6% and the HELOC of $31000 at 17.9%; I was given a loan of $222300 ($212000 being the combined total of both loans) at 10.57%, still no escrow of course and a monthly payment of $2045 (the other payments combined were $2131). I was told that I didn't have to sign this but if I didn't I would most likely go into foreclosure.
I was scared and signed, as this entire situation occurred because of a divorce in which I had to absorb all of the debt in lieu of alimony and I support my 14 year old daughter. Later I find out that the monthly payment isn't enough to cover the interest and I therefore have a deferred interest balance. This was not discussed or disclosed. I was told that if I made timely payments for one year; they would reward me with a 1/2% rate reduction.
I have had a rolling late since the loan inception, after 1 1/2 years of this loan my balance is $220300 with a deferred interest balance of $9000. This loan was based on a house value of $172000. Housing in my area is booming, however, I am still unable to refinance out of this loan because of my equity position. I have been approved by Champion Mortgage, despite my credit rating (high of 490) and debt to income ratio; however, my home appraises at $250000, not enough to refinance due to debt to income.
I don't qualify for any assistance with Household because I make too much money and "should be able to handle my finances better." My annual property tax is $2016, insurance is $700 and ground rent is $120. I clear $2054 every 2 weeks, I have divorce debt with a debt management plan that runs $456 per month a car payment of $566 due to the high interest rate and utilities that equal $600 per month. Saving for the escrow is impossible because I don't have the extra $236 per month to use.
I am in total financial ruin, I don't believe in bankruptcy, I am terrified of foreclosure and I may just lose my job due to my credit situation. My job requires me to hold a Top Secret security clearance, a big portion of which is based on your credit situation. I make very good money; I have worked for the Feds for over 12 years and I have absolutely nowhere to turn.
I know we spoke before. Do you have any suggestions, besides throwing in the towel?
Household - HSBC Watch is studying this case closely. Let's see if Sir John Bond and HSBC will step up and do the right thing for this single parent. Remember, HSBC claims to have a refer-up program that can make this person a prime loan, not a sub-prime predatory loan.
Household - HSBC Watch challenges the public to watch this situation, offer your opinions, and give this person some support. Let's escalate this one to position of the poster child of the post-Household predatory lending era.
Get on the bandwagon America. Let's send this one to Bill O'Reilly !
Sun Nov 21, 2004 9:24 am
I reference this news report as I make this firm statement: "Household, also known as HSBC North America Holdings, is a house made of straw which will surely fall and burn in 2005, caused by internal self destruction and greed which will not stand up to a revolt by the American public and regulators."
HSBC's Household takes bad loan hit
By Andrew Cave, Associate City Editor (Filed: 17/11/2004)
Profits at Household International, the American consumer finance business of HSBC, slumped by 32pc to $322m (£174m) in the third quarter of this year, partly due to provisions for bad loans.
The figures, compiled under American accounting standards and revealed in a Securities & Exchange Commission filing, show operating net income falling from $472m in the same period last year.
In the first half, Household helped HSBC's consumer finance profits soar from $649m to $2.1billion. The contribution from Household also increased HSBC's provision for bad and doubtful debts, which rose by $429m to $2.8billion.
Sun Dec 05, 2004 11:22 am
This poster needs to do something immediately to save her home from foreclosure. How this lender lies about their "revised loan writing practices!".
This must be reported to her state's Attorney General as well as the Federal Trade Commission. She also needs to see an attorney who is well-versed in predatory lending AND Household's tricks to avoid foreclosure.
For anyone else that this happens to: DO NOT SIGN anything. Take the paperwork to a lawyer who is educated as listed above. Also spread the word near and far (like on this board) about what happened to you.
RICO here we come.....
Sun Dec 05, 2004 11:25 am
You may not believe in Bankruptcy but it may be the only way to get these creeps off your back and buy time to really go after them. Another life destroyed!
I am not giving legal advice, only suggestions. You will never be able to work out a decent arrangement with these idiots, especially on your own.
How many more lives are they going to ruin????
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