We refinanced our home with Beneficial( HSBC) in Feb. 2007. As the mortgage specialist advised we agreed to biweekly payments. It became evident after a year that we would not be able to pay that kind of money every month. We applied for a hardship reduction. The hardship reduction was approved and our payment was cut in half. We received a letter stating that the payment was reduced for 6 months(August 2009). Our understanding was that after 6 months this hardship would be reviewed. After the 6 months, Beneficial told us continue to pay the reduced amount. We did so. In January, out of the blue, a deputy left foreclosure papers on our front door. The papers included a court date less than a month away. They had also scheduled our home for a sale!
Upon contacting Beneficial on how to fix this problem, we were informed we would need $4, 500(on the same day the papers were served). We called Beneficial for a confirmation on this amount and the amount three days later was over 7, 800.00!
They also tacked on 1, 295.00 in attorney fees. They also want another payment before the end of the month.
The loan amount was 138, 000.00 The balance remaining after 3 years is still 144, 000! If we were able to keep this loan and pay it off, at the end we would have over 400, 000 dollars paid to this company.
So, did they go back before the hardship and add the other half for 6 months? 4, 200.00- 2, 800.00=7, 000.00. What real reputable company does anybody know that would let a customer get that far behind before foreclosing.
They don’t take partial payments, so how is it they would let us continue to pay the reduced amount from Sept. to Dec.? They would not. Now all of a sudden, they are trying to take our home, and put 3 small kids out in the street.