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Legal Extortion





BigGeek
I'm being legally extorted by my mortgage company.

In 2006 I had to refinance my home for %125 of it's value to come up with the money to pay the ex-wife her extortion/ransom fee and get free from her abuse. Within one month of getting free from the tyrant, I was dealt another in life when HSBC Mortgage Services purchased the loan on my home.

HSBC stands for Hong Kong Shanghai Banking Corporation. No lie, look them up. They are the worlds largest bank, and one of the most predatory lenders on the planet.

In June 2009 I lost my job, and in October 2009 defaulted on my mortgage payments. HSBC did not take any money from the US Government for the mortgage crisis, and is the only company that offers no long term renegotiation on mortgages they hold. After speaking with numerous lawyers and state officials I have been told that there is nothing I can do to protect myself from this predatory company.

I owe more on the house than it is worth, my new job is a substantial pay cut over my last, job for which I qualified for the payment on. In February 2010, HSBC renegotiated my payment down by allowing me an OK deal on interest. They forgave nothing on the principal and lowered my interest rate from the old 8.25 % to 5.25 % when the going rate was around 5%. So that was an OK deal, however the lower payment was only good for six months. I had to reapply this past month, and their corporate policy is if I have s surplus of 1 dollar in my monthly accounting, I can afford my previous mortgage, so this logic was used to add $500.00 per month to my payment and drive me $400.00 month into the hole, and force me into financial hardship.

The interest rate of 8.25 % is well above the going rate, but because I owe more than the house is worth, I cannot refinance anywhere to take advantage of the lower payments, I earn too much for government assistance, and every lawyer I talk to says that HSBC is a company that will not negotiate under any circumstances, and they are a foreign bank and it is impossible to get them to conform to US Fair Lending Practices.

Basically they can legally extort $500.00 per month from me.

The only way they will forgive the debt is if I sell the house, they won't allow me to take a new loan and forgive the debt, they will only forgive it if I sell and leave the home.......NICE COMPANY HUH?
deanhills
What rotten luck BigGeek. You say you owe more on the house than what it is worth. So is there a reason why you are holding on to it so much? But also, if the house should be sold, and there is a balance left to be repaid, would you still be responsible for that debt too?

Wow, you're courageous to keep this up. I would have packed my bags a long time ago and left the country. Remember, they may have the appearance of really big where you are, but HSBC in the US can't follow you out of the country. They can only follow you in the US. When you move to another country, they don't acknowledge HSBC Branches in other countries. There is no link up to check up on customers who have moved away. So your HSBC does have limited power outside the US, and may be less powerful than you think they are.
ankitdatashn
Oops, so much calculation!, would try the mathematics this sunday... Neutral (no offence meant Smile )
watersoul
BigGeek, no comforting words will ever help but I feel for you after reading your post, really.
You are right, they're legal gangsters and little people like most of us are just business and figures and numbers.

Have you thought about renting rooms out to cover the shortfall (if you really want to keep the house and credit rating), I did it many years ago in similar circumstances. I rented the three bedrooms out and used one of the living rooms downstairs as my bedroom, the bathroom/kitchen/2nd living room being communal.
It was hard at times, but also a laugh as well, once I got to know the "house-mates/tenants".
I was lucky that after 2 years and a housing boom, the property value eventually overtook the mortgage (and I was earning more money at that stage as well), so I finally pulled it off and beat the bastards.

Good luck whatever you do fella, and I hope you win your fight with these crooks.
LittleBlackKitten
It might benefit you more now to claim bankruptcy. It resets your credit completely, and though some might see that as a bad thing, it stops them from being able to force you into anything, and you only lose things you were already going to, like the house, or car. Another option would be to talk to debt consolidation; they act as a counselor so to speak about your money and help you strike a deal with the bank so that you're not drying up in bills.
standready
Wow that sucks! Have you tried speaking to a US owed bank. They may be willing to refinance you at the lower interest rate even with your house value. Worth a shot! Best of luck to you.
BigGeek
deanhills wrote:
What rotten luck BigGeek. You say you owe more on the house than what it is worth. So is there a reason why you are holding on to it so much? But also, if the house should be sold, and there is a balance left to be repaid, would you still be responsible for that debt too?

Wow, you're courageous to keep this up. I would have packed my bags a long time ago and left the country. Remember, they may have the appearance of really big where you are, but HSBC in the US can't follow you out of the country. They can only follow you in the US. When you move to another country, they don't acknowledge HSBC Branches in other countries. There is no link up to check up on customers who have moved away. So your HSBC does have limited power outside the US, and may be less powerful than you think they are.


Wow thanks all of you for the kind words and the encouragement, unlike other sites I'm on, when I posted about the saem thing I got a bunch of crap about how this is all my fault and I should shut up and quit whinning....LOL!

The reason I'm holding on to the house is because I have to, if I could walk away I would, and screw leaving the country, I would declare chapter 13 bankruptcy as "LittleBlackKitten" suggested, but my employment situation prevents it.

I have a Top Secret Department of Defense clearance and if I default on my mortgages and walk away from the house, or declare chapter 13, I lose my clearance and my job, or at least face the impossible task of proving that I had no other recourse but to default and declare bankruptcy.

I do like my house don't get me wrong, and when I got rid of the wife I was pretty optimistic that my job would be intact and my pay would go up, and I could weather through the hardship and pay it down and get things back under control, especially with the wife gone, and her constant spending. When I ended up unemployed for 8 months I was ready to go then, even though I had the clearance, the job had not come through, so I was not concerned about losing something I never had. once the job came through, I ended up in this situation, and the mortgage company knows the house is worthless than it's mortgage, because part of the application included my property tax statement as well as copies of my bills.

I'm stuck in a catch 22, where I can't leave it, or I lose my job, and if I stay I suffer.

I did manage to get a bill consolidation loan on my credit card debt, that saved me 300 per month, along with adjusting my exemptions whcih also helped, cancelled a few bills and I'm back breaking even now. I plan on getting a room mate and have been interviewing people for the spare bedroom and bath. So I'll get through it!

It just sucks that they can do this, and put me in this position, and that there is no where I can turn for help!!

Thanks all of you, I really appreciate the comments and the sympothy, means a lot to me!!
ocalhoun
Yes, the bank is misusing you.

BigGeek wrote:

In 2006 I had to refinance my home for %125 of it's value to come up with the money to pay the ex-wife her extortion/ransom fee

This was mistake #1 though...

Better to tell the court: "I simply don't have that money: you can't squeeze blood from a stone."
Rather than borrow so deeply.

If the court mandated payroll deductions, you could at least get the court to renegotiate these deductions after you got laid off.

By borrowing the money though, you obligated yourself to pay it back.



Perhaps the best course of action now would be to tell the bank, 'go ahead and repo the house, I can't afford it', then go rent a place until your credit improves enough to borrow again.
That's what collateral is for, after all.
standready
BigGeek wrote:
or at least face the impossible task of proving that I had no other recourse but to default and declare bankruptcy.

Speaking with your supervisors in advance would help if the situation does comes to be.
BigGeek
Speaking with my supervisors and communicating what was going on, got me fired! Nice huh? This past January 14th I got a call that my services were no longer needed and my position was terminated. When I inquired why, I was told that my financial hardships were a security risk, and that they would "eventually" jeopardize my clearance, and that my employer had to protect them selves from employees such as myself losing their clearance due to financial mismanagement, so they had replaced me with another person with a more stable financial life. They had interviewed the new person, got them their clearance, and fired me and brought them on board the day after I was terminated with no notice.

When I asked if I hadn't said anything about what was happening in my financial life, would I still have a job, and they said YES, because they would not have been aware of the pending financial problems in my life. When I asked them why they instructed me to divulge what was happening in my life, they said that they have to do that, so they can take steps to protect themselves!

In the unemployment line again!
LittleBlackKitten
I would talk to a lawyer over all this. Seems there has been some improper and possibly illegal steps on the other parties' actions.
watersoul
BigGeek wrote:
[...]In the unemployment line again!

Sorry to hear that fella, I'm actually doing the same myself from the end of this month, just keep positive in your head and you'll get back on top again sometime soon...grab some minimum wage work to cover the bills until you get back into your field, and enjoy the ride/change while you're experiencing it.

I don't know the employment law situation where you are but it might be worthwhile investigating the possibility of unfair dismissal compensation? We have a government service in the UK which helps us chase justice when a business treats workers like dirt. Hopefully you have something similar but it always has to be weighed against the value of a decent reference. I personally want to tell some senior management that they are a load of pricks, but my hands (or mouth) are tied because these same people are going to write what a good sheep/worker I am to a future employer!
deanhills
@BigGeek. I doubt your employer would have fired you without having their ducks in a row legally speaking. So I would try and move away from that as soon as possible if you can. Taking them on will just complicate your life more than it is, besides, it probably will put you even further in the red. Maybe you need fresh beginnings by just surrendering everything you have and starting from scratch again. Now that you don't have to be bothered with clearances, why not declare voluntary bankruptcy and do everything possible to stay free from debt from now on. Turn over a new leaf, don't look back. Perhaps your ex employer provided you an opportunity to get out of this negative debt treadmill existence.
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