hsbc_logoHSBC Loan Modification. What a tough, tough process. First and foremost, HSBC has elected not to participate in Obama’s Making Home Affordable Program, and, for the most part, seems intent on not providing permanent solutions for homeowners whenever possible, preferring to opt for short term (typically 6 month) reductions in interest rate and payments through their “in-house” loan modification programs.

Although HSBC at one time indicated they were going to be taking a more active role in helping homeowners with ARM mortgages that have adjusted, and had agreed to Senator Dodd’s Home Preservation Plan, in all actuality HSBC could be doing a significant amount more to help homeowners avoid foreclosure.

Please note that HSBC and Homecomings Financial are one and the same lender now.

In January of 2008, HSBC launched the Comet program, which sought to identify repeated signs of risk and offer loan modifications to homeowners before they had to request help.  This was a continuation of the HSBC Foreclosure Assistance Program, which is committed to helping homeowners modify their loans and stay in their homes, however the homeowners that were contacted by HSBC under their Comet program seem almost arbitrary, sharing little correlation in financial hardship or circumstance, and the loan workouts and modifications offered too seemed arbitrary.

HSBC Loss Mitigation Department Contact Information

Phone – (800) 338-6441
Address – Default Resolution Team, 2929 Walden Ave., Depew, NY 14043
Loss Mitigation Department – (888) 648-3124
Fax – (732) 352-7519
Website – http://www.us.hsbc.com/1/2/3/personal/home-loans/mortgage/existing/when-payment-difficulties-arise

Commonly Asked Questions

  1. I was asked for a copy of the Financial Disclosure Form by HSBC as part of my loan modification package. Where can I find a copy of it?

    A copy of HSBC’s financial disclosure form can be found here:http://www.us.hsbc.com/1/PA_1_2_39/content/usshared/Personal%20Services/Home%20Loans/Mortgage/Existing/Payment%20Difficulties/fnclform.pdf

  2. What is the deal with the 6 month “band-aid” loan modification solution that I was offered? Are they ever going to place me in a permanent loan modification?

    Most likely HSBC will only offer a 6 month, temporary solution unless you have a great Attorney.  The majority of HSBC’s servicing agreements with their investors do not allow aggressive, permanent loan modifications, and the only way to strong-arm HSBC and the concerned investor(s) into actually granting a permanent loan modification is through either a detailed forensic audit highlighting multiple violations of RESPA and TILA coupled with a pending lawsuit, or through detailed examination of fiscal viability based upon NPV analysis coupled with Net-Cashflow borrower ability to repay the lower payment.

  3. Should I get a Lawyer?

    Definitely.

  4. Where can I speak with others who are having a tough time with HSBC?  Are their already any complaints against HSBC?

    Most definitely. Here are a number of sites that should help:

If your lender is HSBC or Beneficial and you are in need of a loan modification, please complete the form to the right to have a free, in depth discussion regarding the best way to wrestle a permanent loan modification from HSBC.  If you have additional questions about what exactly is a loan modification, or how one can help you, please take a look at the Loan Modification Q&A.  For more information on Modification Zoom, please check out the About area.