HSBC - BENEFICAL WILL NOT FIX THERE MISTAKE! WHAT DO WE DO NOW? ripoff Paying on Mortgage for 7 years, only a couple dollars going on balance Kalispell Montana
In March of 99' My husband set out to buy our first home. We went to Beneficial/HSBC and applied for a MORTGAGE, We wanted a standard mortgage, fixed rate, and our mortgage covering our taxes and insurance $30,000 @ 5.25% for 15 years. Our payment coupons State a payment of 138.00 due each month... We have been paying that amount for the last 7 years... I have contacted this company MANY times in the past about the payment, to my figuring our payment should be around 240.00 NOT 138.00... I was told MANY times that it would soon start to reflect on our principal, right now only 5.00 and some change is being applied to our loan each month. AND they are not covering our taxes or insurance!!
Over the last couple weeks we tried to get a HELOC with another company... We were told we couldnt do it because we already had one that was maxed out.. That would be the loan that we have with Beneficial/HSBC.. What we thought we were getting was a standard mortgage with a fixed intrest rate. What they gave us was a HELOC on a first time home purchase.
I then contacted my local Beneficial branch and talked with a loan officer in there office. She agreed something was wrong and stated to me that it should have been looked at and re-wrote along time ago. She then started a refinance with cash out.... I asked her what was the chance of it going through... (I will admit we have a few nastys on our credit and we are trying to fix things.) She told me that the only way they will turn it down is if the house appraises at less than 30,000...
And worse case cenario I cant get the cash we need.. But they will fix the existing problem and pay off the few items on our credit, so we can get back on our feet...
ok great!!
Then she calls me 2 days later and tells me that it didnt go through becuase they dont feel its in out best intrest to do it.. They will only be able to give us a intrest rate of 11% for the first 6 months, then it could come down a bit but not back to the 5.25% we pay now...
And I know from reading my ripoff reports, They are good at telling you they will refinance it in 6 months but they never do iT!!SO we are stuck in this loan, paying 5.00 on our principal balance each month, we will be paying for the rest of our lives at this rate!
Does anyone out there have any sugestions for us??
Rose
Eureka, Montana
U.S.A.
10 Updates & Rebuttals
R
Portland,Oregon,
U.S.A.
refi now
#11Consumer Comment
Sun, June 04, 2006
My guess is that this loan is about to convert really soon. 7 years is pretty typical. You could possibly be looking at a doubling of the interest rate.
I'd refi now if I were you.
Tom
Palm Bay,Florida,
U.S.A.
heloc is interest only
#11Consumer Comment
Sun, June 04, 2006
Hi
I suggest you cut your losses here. Which really arent losses. If these guys promised you a 15 year fixed, i dont think they followed thru. It sounds like you ended up with an interest only heloc for a time frame -then it converts to a amoratizing loan at some point.
Go refinance your property with a standard 30 or 15 year fixed which you can get @ 6.5 according to the fannie may retail average. 15 year will be cheaper.
If you use a mortgage agent, you can get a lower rate, but with such a low loan amount and time frame to pay it off, you might just go to your local bank.
there is little point worrying about it now, you didnt pay extra , you just didnt get the mortgage you thought you were.
If you need extra cash, incorporate that into your new loan.
Rose
Eureka,Montana,
U.S.A.
Yes Heloc with 5.25%
#11Consumer Comment
Sun, June 04, 2006
It is a HELOC and the rate is 5.25% and yes we should pay around 240 a month as I stated in my first post, I have asked over and over for them to review it. And I am told time and time again there is nothing to review... Whom ever did this loan gave us a heloc at 5.25% 7 years ago For 30,000. With a 50.00 a year finace fee, SO we pay the 5.00 a month on the principal and then they add 50.00 a year to it,( do the math that puts about 14.00 on the principal each year) This is why we want to refinance else where, Its obvious this company has made a mistake on there paper work. Why shouldnt they be held responsible for that?
Why did I pay it for 7 years, Because I dont know all the ins and outs of mortgages, I was told repeatedly after the first 5 years it would show a significant amount of diffrence on my principal, And it never did, after that I questioned them 4 times and the 5th time someone agreed that there was something wrong. BUT beneficial wont make it right.
I just made yet another payment Plus 300.00 my balance has came down 305.37 So no there isnt more principal being paid, its still paying 5.37 to my principal.
I have talked with a number of companys about refinancing. FHA was one of them and The man at FHA told me around the time I got my loan Beneficial/HSBC did NOT do mortages they only did HELOCs and smaller loans.
I hope to clear this up very soon, I would advise anyone to steer clear of Beneficial/HSBC.
Rose
Eureka,Montana,
U.S.A.
Yes Heloc with 5.25%
#11Consumer Comment
Sun, June 04, 2006
It is a HELOC and the rate is 5.25% and yes we should pay around 240 a month as I stated in my first post, I have asked over and over for them to review it. And I am told time and time again there is nothing to review... Whom ever did this loan gave us a heloc at 5.25% 7 years ago For 30,000. With a 50.00 a year finace fee, SO we pay the 5.00 a month on the principal and then they add 50.00 a year to it,( do the math that puts about 14.00 on the principal each year) This is why we want to refinance else where, Its obvious this company has made a mistake on there paper work. Why shouldnt they be held responsible for that?
Why did I pay it for 7 years, Because I dont know all the ins and outs of mortgages, I was told repeatedly after the first 5 years it would show a significant amount of diffrence on my principal, And it never did, after that I questioned them 4 times and the 5th time someone agreed that there was something wrong. BUT beneficial wont make it right.
I just made yet another payment Plus 300.00 my balance has came down 305.37 So no there isnt more principal being paid, its still paying 5.37 to my principal.
I have talked with a number of companys about refinancing. FHA was one of them and The man at FHA told me around the time I got my loan Beneficial/HSBC did NOT do mortages they only did HELOCs and smaller loans.
I hope to clear this up very soon, I would advise anyone to steer clear of Beneficial/HSBC.
Rose
Eureka,Montana,
U.S.A.
Yes Heloc with 5.25%
#11Consumer Comment
Sun, June 04, 2006
It is a HELOC and the rate is 5.25% and yes we should pay around 240 a month as I stated in my first post, I have asked over and over for them to review it. And I am told time and time again there is nothing to review... Whom ever did this loan gave us a heloc at 5.25% 7 years ago For 30,000. With a 50.00 a year finace fee, SO we pay the 5.00 a month on the principal and then they add 50.00 a year to it,( do the math that puts about 14.00 on the principal each year) This is why we want to refinance else where, Its obvious this company has made a mistake on there paper work. Why shouldnt they be held responsible for that?
Why did I pay it for 7 years, Because I dont know all the ins and outs of mortgages, I was told repeatedly after the first 5 years it would show a significant amount of diffrence on my principal, And it never did, after that I questioned them 4 times and the 5th time someone agreed that there was something wrong. BUT beneficial wont make it right.
I just made yet another payment Plus 300.00 my balance has came down 305.37 So no there isnt more principal being paid, its still paying 5.37 to my principal.
I have talked with a number of companys about refinancing. FHA was one of them and The man at FHA told me around the time I got my loan Beneficial/HSBC did NOT do mortages they only did HELOCs and smaller loans.
I hope to clear this up very soon, I would advise anyone to steer clear of Beneficial/HSBC.
R
Portland,Oregon,
U.S.A.
interest only?
#11Consumer Suggestion
Sun, June 04, 2006
In order to amortize this loan, your payment should have been 241.16 per month from the begining. Obviously you knew that the amount you were paying was too low, why did you continue paying it?
In order to pay this loan off in 8 years, you'll need to pay about $380 a month. You've made no dent in the principal. You owe 30K.
Was this an interest only loan??
BTW, an HELOC would never have held at 5.25 for 7 years. They're at 7.21 now for the highest credit scores.
Aafes
Viernheim,Europe,
U.S.A.
Something smells fishy here
#11Consumer Suggestion
Sun, June 04, 2006
Rose,
Something smells fishy here. First of all, on a standard mortgage, 15 years, fixed rate at 5.25% the minimum payment would be $241.16. By the time 7 years of payments had passed you should have seen your balance decrease to roughly $18000.00.
All mortgage lenders will require an escrow account for property taxes and most will require a payment for insurance or proof that you carry homeowner's insurance. There is no way this payment is being included in your balance.
You should have copies of all the original loan documents. If not, you need to request them from Beneficial - they are required to provide them to you. Once you have this information take this with copies of your proof of payment to an attorney to have them reviewed.
It sounds as if there was some misrepresentation in your original loan. Additionally, there is NO WAY the home title will be free and clear in 15 years if the lender is calculating your payments in this manner. After the review at the very least file a complaint with the Montana DOJ.
Ginger
Live Oak,Florida,
U.S.A.
I suggest trying to get an FHA Loan
#11Consumer Suggestion
Sun, June 04, 2006
Do a search online for companies that offer this service (FHA) sometimes they will have to do what is called streamlining (basically they re-finance your existing loan plus whatever equity you get out of it) and the first six months of your new loan payments are at an adjustable rate mortgage then after all payments are made on time, they streamline you into a fixed rate which may or may not be higher/lower than your current rate.
On a further note if your sure that there is no balloon payment then you should start seeing your principal balance drop more quickly. as on any note most of the first half of your note if not more is strictly interest and very little principal..as you have reached the halfway point you should start seeing your principal being credited more and interest less.
Be sure to have a mortgage company or attorney look over all the fine print of your current loan just to double check the math and make sure there is no balloon, I wouldn't trust the company you are currently with to be honest, as they have nothing to lose you have already signed the paperwork and paid on the note for 7 years.
Again Good Luck!
Rose
Eureka,Montana,
U.S.A.
But is it up to me to fix there bad?
#11Author of original report
Sun, June 04, 2006
I can send extra payments thats not a problem BUT Shouldnt the company be fixing there mistake? And its not a balloon payment in the note, I was sure to ask about that. No where in the papers we recived does it specify the amunt due each month. Only the 30,000 for 15 years @ 5.25% I have reported there practiced to the Montana Division of Banking. Still looking for a good company to refinance with.. Any suggestions?
Ginger
Live Oak,Florida,
U.S.A.
Pay Extra Principal
#11Consumer Comment
Sat, June 03, 2006
It really sucks what they are doing but each month when you send your payment send an additional $100 and specify that it is to go towards your principal. It sounds like at the end of the fifteen years they will be expecting a balloon payment which by law they do not have to refinance.
If you can afford to send more than $100 extra I would do so and just remember to note it either on your payment stub or on your check and make copies of each stub or check before you send it so you have proof of how you want the extra amount applied. Most companies will apply extra funds that you send to future payments that is why it is so important to specify.
Hope this helps and good luck.
Also I would take your mortgage contract to an attorney for review it can't hurt to make sure you have all the documentation you need.