Ripoff Report Needs Your Help!
X  |  CLOSE
Report: #258532

Complaint Review: HSBC Mortgage Services - Carol Stream Illinois

  • Submitted:
  • Updated:
  • Reported By: Maryville Tennessee
  • Author Confirmed What's this?
  • Why?
  • HSBC Mortgage Services www.hsbcmortgageservices.com Carol Stream, Illinois U.S.A.

HSBC Mortgage Services lured Disabled Veteran into unnecessary restructure, lies, non-responsive, RUDE!! Ripoff Carol Stream Illinois

*Consumer Suggestion: One more thing.

*Author of original report: Good Information

*Consumer Comment: HSBC does simple interest loans

Show customers why they should trust your business over your competitors...

Is this
Report about YOU
listed on other sites?
Those sites steal
Ripoff Report's
content.
We can get those
removed for you!
Find out more here.
How to fix
Ripoff Report
If your business is
willing to make a
commitment to
customer satisfaction
Click here now..

Our mortgage was sold to HSBC early into our contract and soon after we realized we were not dealing with an ethical company.

They would call 2 days after due date demanding money. When we advised that payment was sent they would become rude and disrespectful. They would insinuate that we were lying and would then call EVERY day until payment was posted-not when it arrived-it takes 2-3 days for pmt to post after arrival. Too bad for consumer they say.

My husband is a disabled Veteran (100%)-combat related. When I was diagnosed with a terminal condition and medical bills were piling up, HSBC very nicely offered to waive a pmt and add it to the back of the loan so that we could pay our med bills. We agreed over the phone but were never sent any kind of contract or written documentation-just verbal agreement. We had done this with our car pmt and it worked very nicely. Unfortunately, that is not what HSBC did. They restructured our loan and the result is that for the next 2 years our pmts will go to interest only! And the kicker is that we didn't even need to do it! We were able to juggle our finances and pay everything including that months mortgage pmt but were still held to the restructure "contract".

When we complained we were advised to send a written letter to the Research Dept. for them to investigate. Ha Ha! We got a letter back telling us the reasons why we were given the "program" and that we had no recourse even though there was nothing in writing.

Now they are adding fees to our monthly statement under the "other fees" catagory but can't tell us what they are for. When you call to get answers you're lucky if you get someone that speaks english well enough for you to understand. Then they pass you around and around and nobody ever tells you anything except that it's for "corporate servicing" whatever that is....they don't even know. You eventually give up-which is what they want.

They have been known to call us every day starting 3-4 days before our pmt is due until they post it 3-4 days after the due date. Each time demanding money over the phone and wanting to know the reason why it isn't there yet. When my husband was in the hospital, they called every day wanting to know when that months pmt was being sent. I explained that it would be a little late due to unexpected medical costs for MY recent hospital stay. Each day I had to explain the whole thing over to a new person since they don't read the notes from the day before and you never get the same person. A few times I asked them to call back so that I wouldn't have to "explain" the seriousness and expense of our health conditions to them in front of our children. They refused and even threatened foreclosure if I didn't speak to them right then. All this for a pmt that ended up being made 8 days after the due date. (Which is within the grace period that they say they can each use thier own discretion on whether or not to honor it.)

We have done a great job at maintaining our sanity in the face of all of our health problems while trying to raise two girls but dealing with these folks has been maddening to say the least. There are times when I want to pull my hair out and scream. Many times I hang up the phone in tears.

HSBC has reported us as paying late so many times because we refused to pay the "other fees" without knowing what they were, that our credit is so bad we can't get refinanced. We pulled ourselves out of debt once on our own and now we are being taken out by our mortgage company.

We are tired of fighting with someone who seems to be governed only by themselves. We feel trapped....like we have no recourse and can't even escape.

Stacy
Maryville, Tennessee
U.S.A.

This report was posted on Ripoff Report on 07/03/2007 04:37 PM and is a permanent record located here: https://www.ripoffreport.com/reports/hsbc-mortgage-services/carol-stream-illinois-60197-5249/hsbc-mortgage-services-lured-disabled-veteran-into-unnecessary-restructure-lies-non-resp-258532. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

Search for additional reports

If you would like to see more Rip-off Reports on this company/individual, search here:

Report & Rebuttal
Respond to this report!
What's this?
Also a victim?
What's this?
Repair Your Reputation!
What's this?

Updates & Rebuttals

REBUTTALS & REPLIES:
0Author
3Consumer
0Employee/Owner

#3 Consumer Suggestion

One more thing.

AUTHOR: Nikki - (U.S.A.)

POSTED: Thursday, July 05, 2007

One more thing. Most 30 year conventional mortgages and many ARM mortgages are not simple interest loans and are compounded monthly. Therefore, the grace period does work the way you think it would. When you refinance, ask if it is simple interest or conventional.

Respond to this report!
What's this?

#2 Author of original report

Good Information

AUTHOR: Stacy - (U.S.A.)

POSTED: Thursday, July 05, 2007

Just to clarify.....we did go ahead and pay that months mortgage pmt. We didn't need the "restructure" after all. Their response was "Oh well, you'll just be a month ahead on your mortgage pmts" and refused to take us off the "program".

However, the information you gave was very informative and gave me a better understanding of loans in general than I had before. Also, the concrete advice you gave with actual instructions was extremely helpful and I will take advantage of it. I have been paying them via Western Union to have a documented date of delivery so they can't charge the late fees and also to stop the calls 4-5 days sooner than if I mailed it. When we get some more med bills paid off, we will start adding to our payment like you said. Hopefully, we'll be able to get a refinance in about 6 months since they haven't been able to report us as late now....But if we don't, we will keep plugging along until we do. Thanks for your help!

Respond to this report!
What's this?

#1 Consumer Comment

HSBC does simple interest loans

AUTHOR: Nikki - (U.S.A.)

POSTED: Tuesday, July 03, 2007

HSBC does simple interest loans and you may want to read up on them on the internet. Basically this means interest is compounded daily rather than monthly. Let me try to explain what happened when they added your payment to the end of the loan.

Say you have a mortgage with HSBC and your payment is $500 monthly. If it is early in the loan, within the first few years, your payment may consist of $470 towards interest and $30 towards principal. When you put the payment to the back of the loan, the payment went to the back, but interest kept accruing for an additional 30 days. So if you owe $500 now, and don't pay (because they put it to the back of your loan) and you pay 30 days from now, you will only have to pay $500 for your new payment ($470 which is interest) to keep your loan current. However, since you are $470 in arrears in interest (the 30 days you made no payment), the entire $500 payment goes towards interest, but essentially only $30 toward the interest in arrears and $470 goes towards interest for that month.

There will be many months that your $30 will go towards interest to pay down the interest in arrears. Then (you say 2 years on yours) after the 2 years, your principal will not have gone down at all, so even more interest is accruing than what would have accrued had your $30 monthly principal payments been posted to principal.

If you can, pay the additional payment you were originally going to defer as soon as possible, and later a little extra with each payment and your payments should catch up again.

In addition, if you are even 1 day late, you have the late interest accruing (since these loan are compounded daily), so the next month less goes towards the principal to pay the late interest from the month before. You can get behind in no time with just a few late payments even if they are only a few days late.

Here is how you can find out if you are caught up. Go online to an amortization calculator (BankRate has a good one). Type in your original loan balance, the term, the percentage rate, and the month your loan began. Print out the entire amortization schedule and see what principal balance you should have at this point in time. Then see what principal balance your mortgage company has for you and try to catch it up. Then watch over it each month.

By the way, many auto loans are simple interest loans too, so this same process applies to those. People think that because their payment coupons have a late date and fee, they have that grace period. That's just an extra fee that's tacked on if you're that late, but it is no grace period.

Hope this helps you and others.

Respond to this report!
What's this?
Featured Reports

Advertisers above have met our
strict standards for business conduct.

X
What do hackers,
questionable attorneys and
fake court orders have in common?
...Dishonest Reputation Management Investigates Reputation Repair
Free speech rights compromised

WATCH News
Segment Now