After reading all the reports on this site, I, unfortunately am glad that I'm not alone!
Approximately a year and a half ago, my wife and I wanted to consolidate all our debt into one loan. My credit wasn't the best, but it wasn't the worst. We were contacted by HFC and advised that we qualified for a consolidation loan for our first mortgage and a line of credit to use for all other outstanding credit. We were charged extensive processing, administrative, and legal fees for the loan. We were also given a 11.5% interest rate on the mortgage and a 18% rate on the line of credit! Crazy right!
The loan officer told my wife and I that we would only have this for a short period and then the loan would be rewritten after our credit report reflected an increase in our credit rating. Unfortunately, like my life story, we took the loan at the wrong time. The economy dropped, housing prices, as well as the value of my property fell tremendously. We received a letter from HFC that all of their branch locations were closing and they would no longer be refinancing loans.
Now my wife and I are stuck with this mortgage loan for 11.5%, we cannot refinance because the value to loan on our house is upside down and HFC refuses to rewrite the loan, but gave us a hardship modification for 9.5% for six months! Please remember that at this time rates are currently at 4.5-5%. I would have been happy with 6%!
I was told by one of their loan specialist, a new name for debt collector, that since HFC or their subsidiaries did not take any stimulus many form the US government that HFC was not obligated to go along with the Obama plan or HUD plans. I was also advised by their loan specialist that maybe I should sell the home since I cannot afford it! They do not take into consideration any daily expenses, utilities, vehicle, education, or any other personal loans. They only consider the mortgage, property taxes, insurance, and any medical expenses that you have in your debt to income ratio. I believe that is extremely wrong, if not illegal some how.
I want to know why the US government isn't doing something about this company since they are obviously allowed to do business in the US. I have read that they are based out of England, not sure though. Where is the US Attorney General, Illinois Attorney General, or any other government agency that this would fall under? It is companies like HFC that are forcing homeowners like my wife and I to short sale our home that we would so desperately love to stay in and rent a home! This has torn apart our credit, self confidence, and any hope of living the American dream. I probably wouldn't care about this whole situation and just foreclose and walk away like so many others are doing, but I have two daughters that are in the prime of their education and need to stay in this area.
Somebody please stand up to this company! Force them out of business in this country so that this type of predatory lending is no longer conducted to the thousands of middle class Americans that are working so hard to just live a simple life!
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