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 usacomplaints.com, 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??
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