HSBC Complaint: Loan servicing, payments, escrow account

#1523275 18 Aug 2015

Mortgage Conventional fixed mortgage

Complaint #1523275 submitted on 08/18/2015 relating to HSBC. Complaint relates to Mortgage Conventional fixed mortgage - Loan servicing, payments, escrow account .

Complaint was submitted via Web and sent to the company on Tuesday 18th August 2015.

Narrative (may be redacted).

I had a XXXX mortgage with HFC Beneficial, I was involved in a dispute with them regarding the handling of the loan and the terms, but I had worked out a temporary solution to this and was making scheduled, agreed upon payments with them on time. I was told by them XX/XX/XXXX that they had " written off '' my loan XX/XX/XXXX ( even though I was making on time payments ), they would not give me any further information. I was contacted approximately 6 months later by XXXX XXXX XXXX saying that they were now handling the loan and demanding payment in full. When I spoke with a supervisor ( XXXX ) XX/XX/XXXX, he said my only option was to refinance my house and pay the debt off quickly so that it would n't appear on my credit. He says that even if I pay it out, it will show on my credit as a bad debt until it is completely paid off ( even if I make on time payments ). My understanding is that at the very least, they should allow me to continue to make my payments as per my original agreement with HFC. No one at HFC will talk to me about any of this because they " wrote off '' the loan.

Some notes about the original loan : I was " Bait and Switched '' into a high interest rate and points when I took out the loan ( XX/XX/XXXX ). I was XXXX and XXXX at Beneficial in XXXX NY told us we could borrow the money for 8 %, no points, over the next weeks he put us off and crept the interest up a little, then after my daughter was born and I had been out of work for a few weeks and he knew he had us hooked and too busy to change servicers, he jacked the rate to 12 % and added the points. We should n't have accepted it, but we were stressed and I thought I could refinance it easily soon after. this did n't work out.

When my XXXX child was born she had to be in a XXXX 2.5 hours away from our home for over a month and we financially fell apart for a few years. I worked with HFC to lower the interest rate, and got a lot of run around, but caught up with the new payment terms/plan. This agreement with them had to be renewed every 6 months, they always made this very difficult making me send in paperwork multiple times etc.

The year the loan was " written off '' I was in contact with them regarding lowering the interest rate for the rest of the term of the loan and questioning the way they were calculating the interest, ( I have basically made no progress on principal in all this time ), they made communication extremely difficult and never addressed my concerns, I believe they passed the debt on because they knew they were in the wrong.

I would appreciate any help you can give us with this.

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