HSBC Foreclosure Insight: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA, Part III

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

Written by Guest Contributor

This is a follow-up post to HSBC Foreclosure: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA. In this part, I wanted to tell readers about one important fact that I didn’t learn until I was at the end of my time working with NACA to stop foreclosure.

Did You Know? Some Lenders Won’t Work with You Directly to Stop Foreclosure

When you file bankruptcy (as I’d done in an effort to free up funds to be able to afford to keep my home), many lenders won’t work with you directly. You have to go through a third-party agency like NACA or HUD. Another reason they may not want to deal with you directly is if your loan isn’t an FHA loan.

All three of these applied to my home loan with HSBC, ie, it wasn’t an FHA-backed loan. In fact, it was darn near impossible to find out who owned the loan. A lot of homeowners have this problem by the way, which is why it can be so frustrating to even start the home loan modification process.

In the 2+ years I worked with NACA, I was told everything from HSBC didn’t own the loan; they were just the servicer, to the fact that it was a “privately owned” loan. What they meant by privately owned — from what I could surmise — is that the loan wasn’t a government-backed loan (eg, Fannie Mae, Freddie Mac), but it was likely owned by some corporations or other non-government-backed entities.

Why It’s Important to Know Who Owns Your Home Loan

When I first went to the NACA seminar in 2011, some lenders were there on site who were working with homeowners and modifying loans. If it’s a privately owned loan, then it likely has to go through some type of corporate board approval.

My lender, HSBC was not on-premise at the NACA seminar I attended (surprise, surprise). And, when the NACA rep who processed my paperwork said, “At least let me find out who owns your loan so you can start the process of working with them, I was told that it was “privately owned.” The rep then went on to tell me that these were some of the hardest types of loans to get modified.

And boy, did she turn out to be right! Over two-and-a-half years later, my loan never was modified by HSBC. It was simply sold off. I assume from the paperwork I received that HSBC did own the loan — they weren’t simply the “servicer.”

Post continued below . . .
**************************************************************
There are still plenty of foreclosure cleanup (and RE-related) jobs out there. Get your foreclosure cleanup “Business in a Box” and start this lucrative business right now for 40% Off!

largebox-med
Copyright Violation Notice: If you’re reading this entire post (snippets are fine) on any blog other than ForeclosureBusinessNews.com, it is stolen content. Scraping content (eg, using software to illegally copy and paste copyrighted content from websites and blogs) is becoming a common practice which affects every site owner. So if you see this content someplace else, please take a quick moment to send an email to [info]at[ForeclosureBusinessNews.com] (remove brackets, of course) so that we can take the appropriate action. Thank you in advance for your help.
**************************************************************

Stopping Foreclosure: Why It’s Important to Know the Difference between a Home Loan Owner and a Home Loan Servicer

Servicers simply handle all the paperwork, eg, your payments, paying your homeowners insurance and taxes (if you escrow); etc. They do NOT own the loan. Think of a servicer as simply and administrative assistant to the home loan owner.

Some companies own their home loans AND process them; ie, they’re the servicer and the owner. But, many mortgage companies don’t. And this is why it’s important to know who OWNS your home loan because only the owner can modify your home loan. Your servicer can’t do this.

Now that you understand this difference, let me get back to why some lenders won’t work with you directly. As I said, I’d filed bankruptcy. I put my home in the bankruptcy just in case I wasn’t able to get it modified. When you file bankruptcy and the debts are discharged, it’s illegal for those you owed to try and collect the debt from you.

Speed Up the “Stop Foreclosure” Process by Using a Third-Party Rep to Send In Your Mortgage Modification Paperwork

So I think that’s the reason HSBC wouldn’t work with me directly, even though I offered to sign paperwork to the effect that they’d advised me of my rights and  weren’t breaking any laws and trying to force me to pay the mortgage debt. To avoid even the hint of this, many lenders will ask you to go through a third-party rep.

While NACA was very helpful overall, I could have used any third-party, eg, a friend or family member to submit the paperwork. I didn’t have to go through NACA (or any other formal organization). I could have just called up my lender, told them that so-and-s0 was presenting paperwork on my behalf, and asked them what I needed to send in.

FYI, the person you use as your rep can’t have the same address as you (ie, be living in the same residence as you), and you might be asked to send in a signed/notarized letter saying that this person is sending in mortgage modification paperwork on your behalf.

I wished I’d known this sooner because NACA’s submission system was pretty stringent as far as what you had to submit. They had budget forms for you to fill out, P&L statements, legal documents to sign off on (eg, the Dodd Frank form (pdf file)), etc.

While I appreciate how thorough they were, when you’re submitting the same paperwork over and over again, it gets to be time-consuming. And, every time you submitted new paperwork, a NACA counselor had to go over it with you and sign off on it before it’s submitted to your lender. Towards the end of my dealings with NACA, there were days on end — one time more than a week — when I couldn’t reach anyone at NACA, which delayed the process.

The reason was, NACA gives “save home” seminars all over the country and sometimes there simply aren’t reps manning the phones because their people are “in the field.” This is what I was told.

Again, while I appreciated how thorough and professional NACA was, I’m finding it much easier to work directly with my new lender. They have submission guidelines as well, but I haven’t had to submit nearly as much paperwork. And, I get to call up and speak directly with a rep at the company, without having to go through a third-party, then having them get back to me via a note left in a computerized NACA file.

A Speedy Process with My New Lender

I submitted my paperwork to my new lender on July 31st. The lender received it and had it entered into their system as of August 9th. A rep called me on 8/21 to let me know that she was reviewing my file and I would have an answer about my home loan modification request before the end of the month.

Getting My Formerly Owned HSBC Home Loan Modified in 30 Days

So from beginning to end, the process will be about 30 days (if I receive an answer before the end of this month).

Again, I’ve been going through this process for almost three years and it’s been a frustrating, tiresome process. I feel like my life has been on hold because I can’t make other life decisions until this process is complete.

And this is why I wanted to share my story with other homeowners — especially those who’s home loans were/are owned by HSBC. They were known as a lender that was impossible to work with and it was practically impossible to find first-hand info on working with them. This is another reason I’m sharing.

My hope is that it helps some other stressed, frustrated homeowner who’s at their wit’s end.

Editor Note: Read the Other Parts of This Series — Initial Post that Started Whole Series, Part I, Part II.

Related Posts

Received a Foreclosure Notice? Why You Shouldn’t Plan to Move Anytime Soon – If Ever

Stop Foreclosure by Getting a Same-Day Home Loan Modification: Here’s How and Where

How to Stop Foreclosure by Getting a Home Loan Modification, Loan Forbearance and Even a Principal Reduction: 100% Free Foreclosure Help Given by a Reputable Nonprofit Agency

HSBC Home Loan Modification Help: Yes, You Can Get a Permanent Modification and Even a Principal Reduction — Here’s How

Get Foreclosure Help: How to Find Agencies that Will Help You Stop Foreclosure – For Free

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

Foreclosure Lawyer: Need One? How Not to Get Ripped Off & Choose the Best One

How to Avoid a Deficiency Judgment After Foreclosure

I filed Chapter 7 bankruptcy, and all my debts listed were discharged; can the bank still foreclose?

Could Recent Mortgage Law Challenges Mean More Homeowners Won’t Face Foreclosure and/or That They Were Illegally Foreclosed On and Can Keep Their Homes?

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs. Always look under the “Recent Posts” heading to find the latest job listings.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

© 2013 Yuwanda Black for Foreclosure Business News. Content may not be reprinted or reproduced in any manner without the express, written consent of the author.

HSBC Foreclosure: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA, Part II

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

Written by Guest Contributor

This is a follow-up post to HSBC Foreclosure: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA.

In this post, I wanted to give some “behind the scenes info” of working with NACA to get your home loan modified. Although this contributor’s loan was with HSBC (who was notoriously difficult to deal with), the info shared here can help any homeowner working with NACA – no matter who their lender is.

Post continued below . . .
**************************************************************
There are  still plenty of foreclosure cleanup (and RE-related) jobs out there. Get your foreclosure cleanup “Business in a Box” and start this lucrative business right now for 40% Off!

largebox-med
Copyright Violation Notice: If you’re reading this entire post (snippets are fine) on any blog other than ForeclosureBusinessNews.com, it is stolen content. Scraping content (eg, using software to illegally copy and paste copyrighted content from websites and blogs) is becoming a common practice which affects every site owner. So if you see this content someplace else, please take a quick moment to send an email to [info]at[ForeclosureBusinessNews.com] (remove brackets, of course) so that we can take the appropriate action. Thank you in advance for your help.
**************************************************************

1. A Lot Will Depend on Your Lender: Although NACA assists in the process, the final decision as to whether your home loan will be modified is solely up to your lender.

Some lenders are more flexible than others. For example, HSBC was notoriously difficult to work with – although they gave this homeowner a modification, the payment was higher than what her original payment was, which kind of defeated the purpose.

This brings us to the next point, which is . . .

2. Back Payments: Many lenders try to recoup back payment, which can totally alter what your payments might be. For example, this homeowner was almost $75,000 behind – when back payments, late fees, and attorney fees were added in.

Although HSBC added this onto the back of the loan, it increased – dramatically – what she owned. So although her loan her interest rate was modified down from 8.5 to 5.5 percent, the monthly outlay was still more than she could afford (pushing her “modified” monthly payment to almost $1,700 per month, when they had been $1,578.

3. Stay Organized: Especially if you are self-employed because you will have to constantly submit updated paperwork to NACA. For example, you will have to submit your most recent bank statements, pay stubs, taxes filed, utility bills, property tax info, homeowners insurance info, etc.

So, keep all of this organized in an easy-to-get-to file.

4. Get a Home Office Setup: Instead of having to go to Kinko’s or some other copying/faxing place, spend the $150 or so it costs to get an all-in-one copy/fax/scan machine for your home.

You’ll be sending TONS of paperwork, many times, over a few months (or even a couple of years). It’ll save you so much time and money if you can do it all from a home office setup.

5. Stay Patient: This homeowner said she worked with NACA for well over two years. Again, how fast the process moves will depend a lot on your lender. Plenty of them are backlogged – although more and more seem to be catching up.

Once they start to work on your file though, the foreclosure process can move quickly, especially if you live in a non-judicial state.

So, be sure to stay on top of your mail because that’s the way most of them contact you. If you’re working with NACA, contact them immediately if you receive a foreclosure sale date/notice.

Editor Note: Read the Other Parts of This Series — Initial Post that Started Whole Series, Part I, Part III.

Related Posts

Received a Foreclosure Notice? Why You Shouldn’t Plan to Move Anytime Soon – If Ever

Stop Foreclosure by Getting a Same-Day Home Loan Modification: Here’s How and Where

How to Stop Foreclosure by Getting a Home Loan Modification, Loan Forbearance and Even a Principal Reduction: 100% Free Foreclosure Help Given by a Reputable Nonprofit Agency

HSBC Home Loan Modification Help: Yes, You Can Get a Permanent Modification and Even a Principal Reduction — Here’s How

Get Foreclosure Help: How to Find Agencies that Will Help You Stop Foreclosure – For Free

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

Foreclosure Lawyer: Need One? How Not to Get Ripped Off & Choose the Best One

How to Avoid a Deficiency Judgment After Foreclosure

I filed Chapter 7 bankruptcy, and all my debts listed were discharged; can the bank still foreclose?

Could Recent Mortgage Law Challenges Mean More Homeowners Won’t Face Foreclosure and/or That They Were Illegally Foreclosed On and Can Keep Their Homes?

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs. Always look under the “Recent Posts” heading to find the latest job listings.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

© 2013 Yuwanda Black for Foreclosure Business News. Content may not be reprinted or reproduced in any manner without the express, written consent of the author.

HSBC Foreclosure Insight: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

Written by Guest Contributor

Back in April in the post, HSBC Foreclosure: Insight into If HSBC Offers Principal Reductions on Home Loans, a homeowner who had been working with NACA to get her home loan modified wrote in to give us an update on how this was progressing.

She sent in the following update to that post. If HSBC is your lender and you’ve been trying to get your home loan modified with them, this advice may help. It also provides some great insight into working with NACA.

Working with NACA to Stop Foreclosure

Well, my last go round with HSBC has come to an end. I was not able to get my loan modified with them – to my satisfaction – even with NACA’s help. To recap, I started working with NACA in/around January 2011. I submitted all paperwork to NACA at one of their live events.

Post continued below . . .
************************************************************** 
There are  still plenty of foreclosure cleanup (and RE-related) jobs out there. Get your foreclosure cleanup “Business in a Box” and start this lucrative business right now for 40% Off!

largebox-med
Copyright Violation Notice: If you’re reading this entire post (snippets are fine) on any blog other than ForeclosureBusinessNews.com, it is stolen content. Scraping content (eg, using software to illegally copy and paste copyrighted content from websites and blogs) is becoming a common practice which affects every site owner. So if you see this content someplace else, please take a quick moment to send an email to [info]at[ForeclosureBusinessNews.com] (remove brackets, of course) so that we can take the appropriate action. Thank you in advance for your help.
**************************************************************

Almost 2 Years with Very Little Word from HSBC

For almost two years, nothing happened.

During this time (2011), I filed bankruptcy (which was discharged) to be able to free up funds afford to keep my home. Even though I filed bankruptcy, I DID NOT reaffirm my home loan. The reason is, I didn’t want to be saddled with the debt if the loan couldn’t be modified.

Everyone once in a while I’d receive something akin to an annual notice about taxes being paid and/or the increase in my mortgage (because I had an adjustable rate, interest-only loan). Other than this, I received no notices about foreclosure or anything else from HSBC.

This year (2013), things started to heat up. In January of this year, I submitted (updated) paperwork yet again to NACA. HSBC had apparently been having problems receiving the paperwork that was submitted via NACA’s internal submission process. And, I also think that they were just behind processing loans, so this is what accounted for the almost two-year delay.

HSBC Modified My Home Loan, but . . .

Finally, in February 2013, I received a notice from NACA that HSBC had agreed to modify my home loan. BUT, the payments were higher than what my original payment had been; it was 60% of my take home pay, and there was no principal reduction offered.

As the home was more than $100,000 underwater and I’d religiously made 6+ years of INTEREST ONLY payments, I turned down the offer and applied for an appeal. An appeal is where you request that they reconsider your loan modification request.

My appeal was denied in March 2013; HSBC got back to me pretty quickly after I submitted the appeal paperwork. After the appeal was denied NACA closed my file, putting in a note that said:

NACA FILE CLOSED – NACA MOD TREATMENT APPEAL DENIED: Customer does not qualify for a Restructure. This is declined for Net Present Value (NPV) Negative. The NPV of the proposed NACA modification was lower than the NPV of the loan as is, resulting in a NPV negative of (- $35,661). Changes from your budget were: NONE. We will review your file for HSBC’s internal modification programs. Please allow up to 30 days for the review to be completed. Please feel free to contact HSBC directly for an update on the review.

In March 2013, I received my first foreclosure notice; the sale date of my home was set for April 2013. Upon receiving the notice, I immediately contacted NACA and submitted more paperwork in support of my appeal request. The date of the foreclosure sale came and went – and nothing happened. The sale of my home didn’t happen – and I never received another foreclosure notice.

I appealed the decision – yet again – with NACA. It was again denied. NACA left the following note in my file in July, the final time I heard from them:

NACA FILE CLOSED – NACA MOD TREATMENT DENIED: Customer does not qualify for a restructure, the account has been sold to a third party. The file has been closed. NACA FILE CLOSED – NACA MOD TREATMENT DENIED: Customer does not qualify for a restructure, the account has been sold to a third party. The file has been closed.

In June 2013, I’d received a notice from HSBC that my home loan had been sold to Vericrest Financial (aka Caliber Home Loans). I was ecstatic – I no longer had to deal with them.

Where Things Stand Today with My Foreclosure Process

I’m no longer working with NACA. I’ve applied for a home loan modification directly through my new lender.

I did some research and found out that they began as sort of a “distressed lender,” servicing buyers who had bad credit, etc. I’m hoping that they know how to effectively work with homeowners like me who are underwater but want to keep their homes.

Modifying My Home Loan: How the Numbers Shake Out

I’m willing to pay what I signed on for – even though the house is over $100,000 underwater. What I’m not willing to pay are all the late fees, etc. that have been tacked on to the loan.

Following are some figures that better explain why I’ve come to this decision.

Current Worth of Home: $115,000 to $125,000

Balance Owed on Original Mortgage: Approx $225,000

House Currently Underwater by: $100,000

Total Paid in Interest Only (for 6 years): Approx $110,000

Late Fees / Legal Fees Owed: Approx $75,000

TOTAL TO PAY: $300,000 IN ADDITION TO the $110,000 I’ve already made in interest-only payments since I’ve owed the home — for a house that is only valued at: $115,000 to $125,000.

Stopping Foreclosure: My Decision

My final decision is that I’m fully prepared to move and let them have the house if this latest home loan modification request doesn’t work with the new lender. This has been going on for almost three years now and I’m ready to move on with my life.

I’m debt free and can make a fresh start if I leave this home, and will be able to outright buy something within the next 5-7 years if I save (which I plan to do).

I’ll give one final update on my story once I hear about this latest modification request. I hope my story helps someone else if they’re facing foreclosure, have HSBC as their lender, are working with NACA, and/or just need some insight into what to do.

Editor Note: Read the Other Parts of This Series — Initial Post that Started Whole Series, Part II, Part III.

Related Posts

Received a Foreclosure Notice? Why You Shouldn’t Plan to Move Anytime Soon – If Ever

Foreclosure Notice: How to Understand It & What to Do When You Receive One

Get Foreclosure Help: How to Find Agencies that Will Help You Stop Foreclosure – For Free

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

Foreclosure Lawyer: Need One? How Not to Get Ripped Off & Choose the Best One

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

How to Avoid a Deficiency Judgement After Foreclosure

I filed Chapter 7 bankruptcy, and all my debts listed were discharged; can the bank still foreclose?

Could Recent Mortgage Law Challenges Mean More Homeowners Won’t Face Foreclosure and/or That They Were Illegally Foreclosed On and Can Keep Their Homes?

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs. Always look under the “Recent Posts” heading to find the latest job listings.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright ©2013 Yuwanda Black for Foreclosure Business News. Content may not be reprinted or reproduced in any manner without the express, written consent of the author.