Consumer complaint received 2017-04-08
Product: Mortgage — Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure — 
Company: HSBC NORTH AMERICA HOLDINGS INC. (UT)

Back in XX/XX/XXXX we refinanced our house with HFC Mortgage, our daughter was getting married and we needed some cash out. One thing that was odd right at the first was instead of giving us the additional equity cash out they gave us what they called a side car loan which was a credit line with a fairly high interest rate. A few years later my wife started having health problems and was taking a lot of unpaid time off of work also we had had our son and his wife and children move back home with us. This put a lot of financial stress on us, this was after the financial collapse and we were unable to refinance again to get the payment back down to a lower rate. I had heard about a lot of institutions offering modifications to help distressed borrowers so I contacted HFC in writing and explained our situation and ask for a loan modification. A while later I got a letter back in the mail stating they were under no obligation to modify our loan. We continued to struggle with the monthly house payment of {$1300.00} at I believe 9.72 % interest. We later filed chapter XXXX bankruptcy we did out best to stay on top of the house payments. The bankruptcy was later dismissed because we could not keep up with the plan payment. Again I ask HFC for a modification and got the same response. Now to present day, we are in a better situation so we are trying to refinance the house. HFC sold our loan to XXXX. When our mortgage broker requested a payoff from XXXX it came back with {$9200.00} added to the end of the loan for a supposed re-age agreement. I never entered into a re-age agreement with them, I never signed this agreement. Both times I requested assistance from them I was declined in writing. They never contacted me back by phone or any other to discuss this option with me and I was totally unaware. Now they are sayng they have put seven payments to the back of our loan. Our mortgage underwriter is asking for a copy of this re-age agreement and an explanation. I went to XXXX and ask for this there is nothing in the file sent to them from HFC so they reached out to HFC and requested a copy of the document. It was to be sent to both them and myself this was requested on XX/XX/XXXX and we still do not have it. On XX/XX/XXXX I called HFC and ask for a copy of this they told me it would take at least 15 days to produce it. Today is XX/XX/XXXX and I still do not have it. I have often thought because this is an investor backed conventional mortgage HFC was doing anything they could to keep this mortgage afloat and keep us paying this high interest rate. They are more concerned about their investors than anything else. I also work in the financial industry and I do know the CFPB guideline about extending credit ( payments to the back of the loan ) the makers must provide proof of the ability to repay the debt ( proof of income ) and sign a statement to this effect. Provide a written hardship letter and all parties on the note must sign the re-age or extension agreement. The house payment to income ratio and the overall debt to income ratio must be within industry standard guidelines. This did not happen in this case. We signed nothing and provided them with no proof of income or anything else.