Like many US citizens I was a new Buyer with shady credit after a young marriage that ended in divorce. But having children to raise, I still wanted to achieve the dream of owning my first home, not renting someone Else's property the rest of my life! I tried for three years, never giving up! I remarried during that time, and my new husband also had a child from a previous marriage, who is disabled.
Fortunately my endless effort to purchase a home was a success! We were so excited about the prospect of being new home owners, even if the property was an older home! However after a year of residing there, this excitement began to diminish! Why? Well, it's simple, although we achieved our dream of home ownership, given the past shady credit on record at the time of acquiring the home; we obtained an 80/20 loan, or in laments terms: %100 financing with an Adjustable interest rate, and at the time we were told we could rid it by refinancing locking in at a decent rate following our timely payments!
Well, this was a far-fetched shattered hope, as when I tried to go up to the banks (via Lending Tree.com) most turned me down, in spite of the on-time payments throughout the first year, and others told me I should wait another year, and so I did! I tried again, dreading the upcoming Adjustable mortgage climb, and again ran into the same situation!
What was I doing wrong? I didn't do anything to damage my credit, and made my payments each month, and with those lenders who wanted to actually refinance me weren't offering a fair interest rate! I was running out of options and was afraid I'd be losing my home some time in the near future if I couldn't get a fair deal! And so HSBC (whom we were already a customer with for the %20 portion of loan), offered to refinance us with an additional to pay things off or cash us out with, should we need the extra money to catch up on bills with!
However, prior to this occurring, the Adjustable portion of the loans had indeed taken affect, and was set again to do so periodically for 6 months until it reached the existed maximum interest rate allowed via the terms of that particular loan. Gasping, we accepted their refinance, although it wasn't any better. But, we were also told by the Lending Officer we signed with that we could revisit the loan and refinance in the next 3 months to lower the payment.
I believed him, and so when I called him to set us up an appt. to come in and do so, he told me differently than he had at the closing table, and that he could not readjust the rate! There for the additional money they gave us to cash out with, we paid back to them to pay the mortgage payment, plus interest! As although they saved us from an adjustable rate climb in the future with our previous loan, theirs wasn't any better, and in fact for the short time we believed they could readjust the loan after the 3 months, it was $600 more.
HSBC undoubtedly took us for a ride! So much for our credit and all of the timely payments we had made over the course of two years huh? It's exactly how I felt! Cooperate greed is what has been happening to many other families like me! And so I really started to feel helpless, worried about the thought of losing my home was drawing closer.
I called HSBCs hardship department and they would not help us in spite of the information we offered them to catch a brake! It was because of the money we cashed out with at the closing table, and even though we spent it by giving it back to them, they still turned us down! I was running out of options!
I contacted a friend of mine who works in the Real estate business and fortunately she was eagerly able to shed some light on our situation, in effort to save my family from becoming homeless, as two of my children were under the age of 3 yrs old, I had just given birth to a baby boy, and did I mention earlier that my step son is disabled? Well apparently right around the time I was ready to ditch my house all together, telling HSBC more or less to shove it, the house market was really taking a turn for the worst, and many families were feeling the same effect as ours!
What I had learned from my Realtor friend was, FHA was stepping in to help! Finally someone was taking all of my timely mortgage payments under consideration! And since I was able to get a lease option Tenant to rent out my home at the time of the closing of my new FHA loan, I was got out of the house and into another one at a secured rate, that is locked in at %7.5 a hell of a lot better than %14....+ Unfortunately the lease option Tenant didn't work a short few months later. And although HSBC is a selfish and greedy cooperate company, I am in no way ashamed of leaving the home they robbed me of.
Why? Well, I can tell you this much; I may have a foreclosure on my hands with HSBC, but I also have a Lawyer to file for Bankruptcy so I owe them nothing, and a new home I still have, protected by FHA! There for I recommend to those who are in the same position I was in to do the same thing I did! Get a Tenant to rent out your present house and FHA loan for your timely payments for a second home or one to call your new primary residence and ditch HSBC or the alike Cooperate Bank robbing you and move on, as long as you don't mind a foreclosure and a Bankruptcy on your report! But, remember, you still have your new home, and so I ask you, what are you really losing in the end? Not a roof over your families heads!? Cooperate greed is killing our Economy and many families are becoming homeless, don't fall victim to it!
Hillsborough, New Hampshire
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