Consumer complaint received 2016-07-19
Product: Mortgage — Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure — 
Company: HSBC NORTH AMERICA HOLDINGS INC. (UT)

I have recently been appraised of the settlement between the state 's attorneys general and HSBC mortgage. I had XXXX mortgages with HSBC ( HFC ). In XXXX during the economic crisis we applied to HFC for mortgage relief under both XXXX and XXXX. We were directed initially to XXXX who informed as had HFC that as HFC had not received any TARP funds they had no obligation to assist in any mortgage relief but that I could apply for a financial hardship request and a interest rate reduction. Our original interest rates were 9.5 % on our XXXX and 13.5 % on our XXXX. My husband was self employed and I worked for a company that ultimately closed and I also went into business for myself. Over the next several years we also had numerous health issues that also overburdened our finances. I received my first delinquency notice on XXXX. For the next several months we went back and forth with HFC. It was in XXXX of XXXX that my husband met with HUD to discuss the " Making Home Affordable Act ''. I already explained that HFC totally stonewalled us on that. Over the next XXXX years we received XXXX temporary hardship reductions for six month period of times. During those times the first mortgage was reduced for six months to 5.5 %. The process for interest rate reduction included long periods of time, many, many request for documents and duplication of documents by HFC. During these years I was constantly under threat of foreclosure and acceleration. By XXXX of XXXX we were still seeking a permanent modification. During the XX/XX/XXXX with foreclosure looming we started seeking help from companies who had contacted us by mail and phone. I was aware that I would have to go into foreclosure to try to get HFC to work with me. Almost all correspondence was between HFC and my husband who handles all of our financial issues. ( I have a XXXX '' binder of letters and actions between HFC and my husband and I. We finally settled on XXXX XXXX XXXX out of Calif. who required that we pay them {$3000.00} for services. We were aware that we should no have to pay for these services but HFC would not deal with HUD reps. By XX/XX/XXXX we were {$6700.00} in arrears. Although we were aware that these kind of companies are generally fraudulent we had no choice and they did work hard for us. In XXXX, XXXX was able to negotiate a reinstatement amount of the past due and acceptance of ongoing payments ( not reduced hardship ). XXXX was also attempting to get int. rate reduction. fee and penalties waived and if possible a reduction in principle. HFC agreed that if we would pay the arrears they would stop foreclosure. That amount had to be paid by XXXX/XXXX/XXXX. We paid the amount and the funds were deducted from our bank. A month later we found that HFC had no record of the pmt and that they were foreclosing. Later we found after waiting for three months and them refusing to locate the funds that they had posted them to an old acct. We were scheduled for foreclosure on XXXX/XXXX/XXXX. HFC even returned a pmt by check for a mnthly pmt they agreed to accept. The only reason the house did not go to sale is the trustee upon verification of our pmt by us refused to sale the property. A month or so before sale, HFC sold the note to XXXX and turned over servicing to XXXX Home Loans. We found out on the internet that this is a common practise of HFC. For the next six months XXXX refused to accept pmts. Demanded a huge amt of documents repeatedly and finally reduced the interest rate to 7 % for 5 years with interests deferred, accruing and penalties assigned. Still HARP or XXXX relief was denied to us. In the proceeding 8 yrs we have accrued $ XXXX in deferrals. Additionally, we attempted to file a Ch XXXX but XXXX challenged it as well as an IRS debt that accrued and it was dismessed by the judge. Gees were assigned by HFC for that. Still no long term relief.