Consumer complaint received 2016-01-23
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: IN
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
TIMELINE - Events that Led to Current Delinquency ( HSBC Loan # XXXX ) COMPLAINT : HSBC Loan Modification should have gone through XX/XX/XXXX Events : After the passing of my wife on XXXX XXXX, XXXX ... besides the large emotional loss, I experienced the financial hardship in losing her income contribution to the household. She also handled all the bills. I was able to keep up with all the bills and timely mortgage payments until being laid off XX/XX/XXXX. That is when I realized that I needed assistance and I reached out to HSBC first, stating that they do not offer refinancing. Unsure where to go, he mentioned Get Hope to HSBC and got to the loss mitigation dept. who informed me that they do not accept partial payments, only full payments, but to look into applying for a possible loan modification. This resulted in my submitting all the required documents to HSBC by fax for a modification review, with the assistance of my daughter XXXX & her husband XXXX XXXX. After this, I left several voice mail messages to inquire as to the review process status/update. 
I only had phone call conversations with HSBC reps and NO written documentation confirming the receipt of the package, indicating any review in process, nor any written confirmation of an offer. The only written correspondence received were Notices of Right to Cure Default and indications of who is my designated Mortgage Servicing Specialist. The one in XXXX was XXXX XXXX XXXX ( # XXXX ext. XXXX ) and the most recent specialist letter dated XXXX XXXX indicating XXXX XXXX ( # XXXX ext. XXXX ). I have had a couple of conversations with XXXX. The first conversation took place XX/XX/XXXX when I was able to speak with her. She told me that they did receive the package, reviewed it, and that I had been approved for a loan modification that would include the homeowners ' insurance and property taxes ( escrowed - since I did n't have them escrowed at the time ) and provided me with instructions by phone. She said that it would also reduce his interest rate and his payment to $ XXXX/mth. 
FURTHER INDICATIONS of a LOAN MOD = but without any documentation being received by me XXXX/XXXX/XXXX = Submitted a request for loan modification To : HSBC Loan Mod Dept. Fax # XXXX Told by phone from an HSBC rep to make two consecutive payments of $ XXXX/month, arranged to be taken out automatically from my bank account on XXXX XXXX & XXXX XXXX ... These were done electronically. He was told that after those XXXX paid, he can pay on own. 
The HSBC rep on the phone informed me that with these 2 payments, the modification would be finalized. No indication of any written agreements or mailings were given in this call. There were no instructions of their mailing any documents to me either. 
The first payment cleared on XXXX XXXX. The second payment in XX/XX/XXXX took 2 attempts but cleared my bank account by XX/XX/XXXX the second time due to an overdraft. However, neither of these 2 payments showed up as applied on mortgage statement. There currently shows only XXXX {$560.00} payment on Mtg. Statements as a " Partial Payment ( Unapplied ) ''. I then made a XXXX payment = XX/XX/XXXX. 
My last time making this agreed upon payment of {$560.00} was done XX/XX/XXXX but returned to me XX/XX/XXXX. 
ENCLOSED : XXXX Bank transactions showing 3 withdrawal payments made to HSBC = {$560.00} dated XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX * Fax cover sent to HSBC Loan Mod on XXXX/XXXX/XXXX along with hardship letter, wife 's death certificate & XXXX XXXX budget. There were XXXX paystubs also included in that package * Copy of HSBC correspondence = XX/XX/XXXX, XX/XX/XXXX, XXXX XX/XX/XXXX I ATTEST THAT THE ABOVE IS TRUE AND ACCURATE TO THE BEST OF MY ABILITY.

Company response to consumer: Closed with explanation