The HSBC is an international lending institution that has opted NOT to participate in the government sponsored Home Affordable Modification Program. This fact has left many homeowners facing foreclosure wondering if they will be able to be granted an HSBC loan modification at all.
While HSBC does not offer any loan modification solutions under the government sponsored program, it does offer several in house options for borrowers facing financial trouble. Depending on a person’s circumstances, this can be a good thing or a bad thing. The lender that refers to itself as “the world’s local bank” is not well known for offering permanent modifications to loans, but they do appear to offer temporary modifications for lengths of time ranging anywhere between six to 18 months. At one point the company even considered extending modifications out to two or three years. One woman on an Internet discussion forum claimed that she was granted an HSBC loan modification for 18 months after the death of her husband, but this was an extreme circumstance.
It would appear that an HSBC loan modification is difficult to attain, but not entirely impossible. Individuals who are thinking about applying for a loan modification through HSBC should do a good job of gathering enough evidence to justify their request. An attorney with experience dealing with difficult to please lenders like HSBC will be able to help borrowers in their quest to modify. The attorney can ensure that all the required documents are filled out correctly and any and all evidence that can help a person’s case is gathered and delivered properly. An attorney will also come in handy if a borrower has to negotiate with an HSBC representative. Since HSBC has refused to take part in HAMP, borrowers will have less leverage with which to negotiate. An experienced attorney will have much more luck in getting the lender to reach a fair compromise.
Holders of HSBC loans would be wise to invest in an attorney only if to have the attorney review the original mortgage documents in search of any violations of laws that apply to HSBC. Many mortgage contracts contain numerous errors and violations that cost homeowners thousands of dollars over the life of their loan, but these errors often go unnoticed because borrowers place too much faith in their lenders to be on the up and up. If an attorney is able to reveal any violations in the mortgage contract, they will be able to have much more leverage when conducting negotiations. Once these errors are brought to the attention of the lender, the lender is usually more willing to modify, since this kind of evidence in a court or civil trial could cause the lender to be forced to modify and potentially pay damages anyway.
Using errors and violations in an original contract to secure an HSBC loan modification appears unethical to many people, but in reality, it isn’t. The average homebuyer can’t be expected to have an expert knowledge of contract and mortgage law when they buy their home. Like clients of any other service, the clients of HSBC and other lenders expect their lenders and lender representatives to be truthful and honest. Recent headlines have shown that bad apples have existed throughout the lending industry that ultimately brought the industry to its knees.
When a person’s home is on the line, there is nothing wrong with reviewing past documents to ensure that everything up to the threat of foreclosure has been accomplished in line with legal requirements. Errors and violations in original lending documents are often responsible for borrower paying more than they should have, which in many cases could be directly blamed for causing a borrower to miss payments and face foreclosure.