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Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

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New Contributor

Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

It took ten months, but we were approved for a loan modification. A few months after we got a bill for legal fees for foreclosure proceeding. I contested the fees with HBSC (our mortgage lender) and the FL State Attorney's office, but we are still getting the bill. What can we do? We did NOT file for foreclosure, we filed for a loan modification, so we don't understand why we got this bill. As well, we did not have any specified fees listed in the loan modification agreement. Hellllllllllllllllllp!!!

Message 1 of 14
13 REPLIES 13
Valued Contributor

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

While going through your loan mod process where you making your payments?  If not, your lender most likely initiated foreclosure proceedings.  If you weren't making payments, then that puts you on the hook for the foreclosure costs. 


CH 7 Filed 7/27/15 Discharged 11/16/15
Starting Score: EQ 620 TU 568 EX 593
Current Score (07/13/16): EQ 674 TU 649 EX 674 (FICO's 08)
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Off to the garden 05/01/16
Message 2 of 14
New Contributor

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

Yes,  we were paying on time. We were paying the amount they told us to pay. It was a reduced amount to see if we could afford it.

 

 

Thank you

Message 3 of 14
Community Leader
Super Contributor

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

A homeowner doesn't file for foreclosure, a homeowner gets foreclosed on by their lender when they default on the loan terms.  So it appears that somehow, someway, HSBC doesn't believe you fulfilled your end of the deal and initiated those foreclosure proceedings.  Call up HSBC to find out why they started it, there will be your answer.  Let us know what they say.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 4 of 14
New Contributor

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

 

 

 

Thanks for your reply. I am aware that homeowners do not file for foreclosure (I worded it incorrectly). We have proof of every payment made and the dates they were made. It makes sense now because while we working with one department we would get a call from another department asking us about the payments. We would always have to clarify (with proof) that we were making the payments on time ( this went on for 10 months).

 

Thank you again for your response.

Message 5 of 14
New Contributor

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

Actually one letter stated it was for F/C  (foreclosure) fees an another letter stated it was for tittle fees. There was no mention of fees in the contract. We have contested the fees.

Message 6 of 14
Established Member

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

I wish I could give you some solid information, but all I can tell you is that I know/lived exactly what you are talking about. It seems to be a trend that banks are foreclosing on loan mods in good standing. I filed a complaint with US Controller of Currency. It is still pending though, and I am told it will be quite sometime before it is addressed, but I do have my name in the mix.

Message 7 of 14
Community Leader
Super Contributor

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

Foreclosure and/or title fees could relate to the same thing. Find out what they did exactly, if anything, they must have an invoice list for the costs that were incurred, and they shouldn't be adding anymore than penalties and/or interest permitted by law. Like you said, a lot of times a bank's right hand doesn't know what their left hand is doing, it's your job to make them aware of what is going on, even if you have to repeat it for the 100th time.
Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 8 of 14
Established Member

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

Additionally, if you decide to keep moving forward with this; keep your eye on the city records and your fico score. If you are dealing with a bank that is too big to operate (I mean fail) it is possible for them to still accidentally foreclose. Do not rely on the person helping you at the bank with the loan mod (mine assured me everything was all set), call their foreclosure dept on your own (they will be rude, but who cares, this is your home) and make sure they know you have reached an agreement with the loan mod dept, you may even have to fax copies to them.

 

I have my own bank horror story!

 

KEEP EVERY SCRAP THEY SEND YOU. It has been my only way to move forward with any use of credit at all, not to mention all the other life stuff that is vicariously attached to your credit (insurance for example).

Message 9 of 14
New Contributor

Re: Helllllllllllllllllllp! Approved for Loan Modification then got billed for fees

Thank you for your reply. You stated that you filed a complaint with US Controller of Currency, where did you file that complaint? online? We did receive a letter from HSBC stating they were investigating our complaint. I know it probably will take much more than their investigation to rectify this matter, so I need to take it to the next level.

Message 10 of 14
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