HSBC Mortgage Complaint

HSBC Mortgage department,

Conventional fixed mortgage Loan modification,collection,foreclosure New York

I am contacting the CFPB for help in trying to deal with my mortgage company, HSBC Mortgage Service Center. Please see the attached original mortgage note which shows this loan originated on -/-/- with the original principal balance of $410000.00 with a rate of 6.125 %. This was a full document loan with good credit. I had been promised a 5.875 % according to the attached commitment letter but at the time of closing, I was told the rate was locked at 6.125 %. As you can see on the HUD - settlement statement, I was charged $10000.00 to the broker and what I was informed well after the fact the broker also made the yield spread on the rate of $7300.00 for a total of $17000.00 on a rate and term refinance. The purpose of this loan was to combine the - and - liens which were both taken at the same time when the home was purchased. This loan also had PMI for being over 76 % LTV according to the disclosures so this should be considered a conventional loan. HSBC contacted me to modify my loan back in - of - reducing the rate from 6.125 %


The modified loan amount was $400000.00 after including an unpaid principal balance of $400000.00 making the new money amount only $3400.00 which was just a little more than - payment I was due as they told me to hold off paying that because the refinance was going through. At the closing, when I saw the rate would be increasing after 5 years, I was told not to worry, they will refinance or modify this loan before that happens when it is time to remove the PMI I was paying monthly.The reason my loan fell delinquent was because back in - of -, - - hit our area devastating many homes and leaving a wake of damage. Although the damages to my property was not severe compared to many, I still depleted my savings to remove a down tree across the driveway and repair the fence and roof. That same month due to the decline in business and damage to the offices, I had lost my - job after 9 years with - - -, which was a reduction in income of $2400.00 a month. My monthly net income was nowhere near enough to cover my mortgage payment, let alone any of my other expenses. I was in shock after now having no savings and no additional income, I quickly applied for a loan modification which took several months for a decision to finally be made and I was declined. I was declined several times thereafter for different reasons from the value of the home to having too much debt when I have nothing on credit but my mortgage or not enough income which my income is at a 35 % ratio during the last review which is not out of range. The most recent denial was from -/-/- stating I do not show sufficient income in addition to my monthly expenses. I was advised my monthly expenses were calculated to be much higher than they were and I was told it was due to accounts reporting to credit. I quickly pulled a tri-merge credit through - and the only open credit account is this mortgage. There are no liens, no collections and no charge-offs or judgments. HSBC advised me to forward that credit and they will get back to me but never did and never addressed this. I was told I can just re-apply. I am now at the point I have been served with a foreclosure summons.