In the fall of 2010, some large U.S. banks (eg, Bank of America) stopped foreclosure proceedings against homeowners because an investigation by the government into a practice known as robosigning. In March of 2011, HSBC, Europe’s largest bank, did the same thing. So, what does this have to do with getting home loan help from this lender?
To be specific, it gives homeowners whose mortgages are owned by this bank a chance to get their act together to prevent foreclosure. When trying to do this, knowledge is power. So, following is some insight into what to expect if from HSBC bank if you’re seeking a mortgage modification, to refinance, principal reduction, etc.
Home Loan Help: HSBC Very Proactive at Beginning of Foreclosure Crisis
HSBC was very helpful at the beginning of the foreclosure crisis. It actually reached out to homeowners and offered them reduced payments if they needed them.
Fast forward a couple of years, and it has developed into one of the toughest banks to deal with when seeking a foreclosure prevention assistance (eg, a mortgage modification). This is according to chatter around the web on forums, finance sites and newsgroup discussions where various lenders and mortgage help is discussed.
Some large U.S. banks, like Bank of America for instance, have developed reputations as relatively easy to work with to reduce mortgage payments. In contrast, HSBC has a reputation for not offering certain kinds of loan modification assistance, eg:
Home Loan Help: Bank of America Offers Permanent Home Loan Modifications; HSBC Doesn’t
Note: Most banks do not like to advertise the fact that they offer permanent mortgage modifications. But if you do a search for a specific bank name, along with the phrase “permanent home loan modification,” you’ll find sites like LoanSafe, where homeowners discuss the permanent mods they’ve received from large U.S. banks like Bank of America (BofA).
For example, one BofA homeowner I know of got her mortgage reduced by almost 50%, going from paying almost $1,600 a month to paying just over $800 — and this includes property taxes and insurance. And yes, this was a permanent home loan modification, not some temporary mod that can go back up over time.
One homeowner trying to get a permanent mod from HSBC noted in a forum on LoanSafe:
“I have tried very hard for more than a year to get a permanent loan modification with out any luck. I give up. HSBC is the worst bank to deal with … They gave me their 6 months modification, but after those 6 months they did not want to do any modification.”
Home Loan Help: Bank of America Gives Principal Reductions; HSBC Doesn’t
Furthermore, the homeowner just above also receive a principal reduction. What this means is that Bank of America (her lender), took $16,000 off what she has to pay them back. This is very uncommon of – even in this foreclosure-ridden market.
I know of another homeowner who received a significant principal reduction from his lender as well, along with a permanent home loan modification that cut his payments down to just over $700 from over $1,200 (and this includes property taxes and insurance).
So, lenders do offer this kind of home loan help. But again, they don’t like to advertise it.
It should be noted that both of these homeowners were willing to walk away from their homes and they lived in Georgia, which, at the time of this writing, ranked seventh in the nation on the list of the states with the highest foreclosure rates.
Compare the above with HSBC bank, which does not offer offer principal reductions – at all. While they will give temporary mortgage modification help, they do not offer permanent mods.
Home Loan Help from HSBC: Conclusion
In conclusion, be certain that any home loan help you seek with HSBC (or any other lender) is something you can afford for the long haul because if you can’t, you may find yourself facing foreclosure again – if you miss even one payment.
Learn more about what to expect from HSBC bank if you’re seeking home loan help like modification at http://www.foreclosurebusinessnews.com/hsbc-bank-halts-foreclosures-in-us.
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