Consumer complaint received 2015-04-02
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: HSBC NORTH AMERICA HOLDINGS INC. (NJ)

We originally took out a mortgage loan in XXXX. After financial problems forced us into bankruptcy, we went through several lenders. Our mortgage was split in XXXX between XXXX XXXX and Beneficial. We recently settled with HSBC / Beneficial for a loan modification after 5 years in foreclosure status. When our bankruptcy was dismissed in XXXX, the monthly loan amounts went to XXXX per month from XXXX. We continually received monthly statements from the company, with that monthly amount, until it was reduced to {$890.00} in XXXX ( statements attached ). The amount we owed on the principal was outstanding at XXXX and the total amount due was {$290000.00} as of XXXX/XXXX/XXXX. A year and a half a go we secured our XXXX lawyer, and there was an agreement for a loan modification in XXXX XXXX. He arrived at an agreement with the mortgage company, which we reluctantly took, rather than be forced out of our home. The cost for the modification was {$4000.00}, plus a XXXX payment of {$810.00}. We felt hurried to make this agreement because in XXXX XXXX we were due to go to court and our lawyer assured us we would lose the house, because the judge was " tough '', in his words, and the opposing attorney only gave him XXXX options, the worse being ejected from our home in the middle of winter ( email attached ). In hindsight we would have asked the court to scrutinize the amount we need to pay over the next 20 years, plus a balloon payment of over {$100000.00}. Our new monthly will be {$790.00}, with {$89.00} going to the principal, {$200.00} going to interest, and {$490.00} going to taxes in an escrow account. The fixed interest is 6 %. Because our home was damaged by XXXX XXXX we can not fix our home to where we can secure insurance. Our yearly income is a {$XXXX} pension and {$XXXX} from part time work. We fear we will never get equity in the home, as our home has been valued around {$190000.00}. We have always acknowledged a willingness to repay the debt, originally take out by my deceased father-in-law. But it is the amount we are repaying, and the failure to give us a reason why the monthly amounts were so high. We originally took out the mortgage with XXXX XXXX until we went into bankruptcy and they sold the note. After that we could never confirm an actual amount owed, even with our lawyer, who was later relieved of his license by the state. Our XXXX lawyer, did not know anything about bankruptcy so he hired an other to work with us. They had a disagreement and she quit. We tried to contact him, but he never returned our calls nor answered our emails. We tried to get help through an advocacy agency in XXXX XXXX, we gave them all the information, and they asked for more. They stopped communicating with us, and when we finally did contact them, they claimed the funds were gone. We did make a complaint to the agency head. but received an answer not addressing our concern ( see email reply ). Our last lawyer admitted we had a difficult case, and after more than a year he suggested a loan modification. We were not happy with this, because it was five years later, and then the mortgage company decides to do the loan modification. Had this been done 5 years earlier, we would have avoided the interest, which was 8.99 %. Plus, with all this, the question as to why we were charged over {$5000.00} per month for years was answered in a XXXX email from our attorney 's firm, but was never resolved ( see email ). Also, we have a copy of the mortgage company 's attorney writing to our attorney : ... '' I apologize for hounding you, but this matter is set to be service-released to another servicer very shortly and HSBC seeks to get this settlement agreement finalized before that happens ... '' ( email attached ) That 's why we have no confidence in this settlement. We have emails and other correspondence and all other information regarding this case. Thank you.