Consumer complaint received 2024-10-17
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: HSBC NORTH AMERICA HOLDINGS INC. (NY)

I am writing this complaint because we experienced housing discrimination and predatory lending. We were first time home buyers and purchased what we thought was our dream home. This loan was obtained during the Housing crisis when consumers were receiving bad mortgage loans. This mortgage included a XXXX and XXXX loans. These loans were destined to fail based on the structuring of the loan. We could have never imagined that a mortgage product as this could have even existed, which is why we were so unsuspecting. The Real Estate Agent that showed us our home referred us to the mortgage broker and the attorney that represented us at the closing. As a young couple we were unsuspecting and nave. We could have never imagined the things that have followed since obtaining the mortgage for our dream home. Below are the facts that evidence that this was a bad loan and destined to fail from the beginning : XXXX The Mortgage was a XXXX Interest only loan. This means for the first XXXX years of the loan ; none of the mortgage payments would go towards the principal balance. 
XXXX In XXXX, we paid XXXX towards the mortgage which only reduced the principal by XXXX XXXX dollars. This is egregious and I would never have guessed that a product like this would even exist. 
XXXX The loans would require a repayment of XXXX over the life of the loan. The initial loan was for {$570000.00} ; this is 3 times the original loan amount. 
XXXX The original mortgage payments of XXXX and XXXX did not include the insurance and taxes of which we were unaware. We did not realize that the taxes were not included in the mortgage payment until we received a tax bill in the mail about 6 months later. 
XXXX The real mortgage payment for the loans was XXXX which we could not afford. In addition, this is an excessive mortgage payment for most people in XXXX back in XXXX. The bank is required to complete a due diligence to ensure the applicants can afford the mortgage payments. We were put in a dire financial situation that was destined to fail. 
XXXX Since the mortgage didn't include the taxes, the bank escrowed the account and began paying the taxes. The first mortgage increased from XXXX to XXXX within XXXX year of receiving the mortgage. This was an almost 50 % increase in XXXX year. In total we were required to pay to XXXX a month for both the XXXX and XXXX mortgages within XXXX year of receiving the mortgage. 
XXXX We have paid over XXXX towards both mortgages for the XXXX XXXX years. We acted in good faith and wanted to keep our home. Even though we have paid over the years the principal balance has not only remained unchanged, but the balance has also increased to approximately XXXX. 
XXXX The original loan included a balloon payment at the end of the loan. 
XXXX The loans also included a pre-payment penalty. 
XXXX XXXX XXXX was the originator of the loan, and they went out of business because of these bad loan products that they wer8e giving consumers. 
XXXX While we have received a few modifications none of them remedied the fact that the loan was bad and destined to fail from its execution. If the original terms of the mortgages were fair and ethical ; no loan modifications would have been necessary. We are hardworking individuals and have done everything we possibly could have to adhere to the terms of the mortgage. This is evidenced by how long it took us to realize that the loan terms were bad. We just wanted to do the right thing and pay our mortgages not realizing that this goal was almost impossible based on the original structuring terms of the loans. All of the modifications just added the past due amounts back to the loan. As of today, based on the terms of the loan, nothing has materially changed from the original terms of the loan. The last loan modification that we received includes a {$300000.00} balloon payment after paying the loan for 21 years. This means that in XXXX, we would still be on the hook for another XXXX and have to refinance the loan for another XXXX years to pay off the loan. This loan has continually been illegal and unethical. This loan has consumed our lives and has caused an extreme amount of stress and undue hardship. We were busy trying to repay the loan that we were unaware that the loan was bad from the beginning. Once we realized that the loan was bad, we have tried to no avail trying to get justice for being put in a dire situation, which is why we have reached out to your organization. 
XXXX A sale date of XX/XX/XXXX has been granted by XXXX XXXX supreme court XXXX We are inquiring if your agency can investigate these violations and the restructuring and original terms of these loans. We have been unable to obtain sufficient legal representation, which is why we are reaching out to your organization for assistance. The fact that we were unable to retain a high-priced attorney, should not deny us fair treatment. The bank has retained some of the largest legal firms and we have mainly been representing ourselves. This is the typical case of big bank vs. little consumer. The more time that has passed the more we realized how bad the initial loan terms were. The above actions violate Unfair and Deceptive Acts and Practices ( XXXX ) as well as many other fraud statutes. Any assistance that can be provided will be greatly appreciated.