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The HSBC is the world’s 6th largest bank and the world’s 8th largest company. It has over 8,000 offices around the world and is the largest company listed on the London Stock Exchange. Obviously, its more than 100 million customers worldwide have also been affected by the financial meltdown caused by the housing crisis. What is HSBC doing to help customers who are facing foreclosure on their homes?
This article will look briefly at the steps you should take if you have a mortgage with HSBC and are at risk of losing your home. Because HSBC is such a large bank and has so many customers in the U.S. it is a prime target for scam artists trying to dupe borrowers into paying for services they can receive free.
One of the first mistakes borrowers make is being over-optimistic. Nobody likes to admit they are facing financial problems, so we often pretend everything is alright and hope things will change by themselves. However, if you are starting to struggle to make your mortgage payments, act immediately, things rarely just work out by themselves. Once you fall behind in your mortgage payments, even if it is only one month, it can be very difficult to recover and extremely easy to lose your home.
HSBC has an entire section on their website under the title: When Payment Difficulties Arise. HSBC recommends you contact them as early possible when you are facing financial hardship. Mortgage owners in financial difficulties should check their options at the U.S. subsidiary of HSBC, HSBCA Bank USA. Click here for a direct link.
Your first move should be to call 800-395-3489 and talk to a mortgage servicing agent and explain your situation. They will discuss with you what options you have and which steps can help you keep your home. Depending on your circumstances you could apply for a loan modification, a temporary payment modification, a repayment plan or a restructure program.
Let’s discuss what each of these programs can do for you.
Loan modifications are agreements between you and your bank to change the terms of your mortgage to reduce your monthly payments so you can afford to stay in your home despite your new circumstances. HSBC also promotes their temporary loan modification which reduces monthly payments for a set period of time if the borrower expects his or her financial situation to improve in the short or mid-term.
Repayment plans are a good option for borrowers who have fallen behind on their payments due to some financial setback, but can now afford to make their mortgage payments. It allows you to pay back a portion of your past due unpaid balance every month and avoid foreclosure procedures.
Restructuring your mortgage is an interesting option. You and HSBC agree to defer your current payments so you can pay late payments without having to come up with extra money. In effect, it is a grace period you can use to catch up with late payments.
Whatever option suits you the best it all starts by contacting your bank as soon as possible, while a loan modification is still an option.
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