HSBC is one of the few lenders who did not opt in for the Government loan mod program, but they do offer their own proprietary loan modifications to qualified borrowers.  The lender follows a similar underwriting and eligibility review process as other banks and HAMP, but the terms that they can offer borrowers are slightly different than under HAMP.  Here is some brief information on the programs and basic guidelines that may help you learn how to apply.

HSBC Loan Modification Programs

  1. Repayment plans:  if you have fallen behind on your mortgage and cannot get caught up, you may be eligible for a repayment plan.  HSBC will make arrangements to divide the past due amount into monthly payments for up to 6 months.  This means that you have to make your normal payment PLUS this prorated additional amount.  This may be a solution if your financial hardship was just temporary and you have the means to make the higher payment for a short while.
  2. Forbearance:  IF you have a temporary financial hardship, say due to job loss or medical issues but feel confident that within a few months you will be able to resume making the normal HSBC mortgage payment, the bank may allow you to miss up to 6 payments.  This missed payments are added to the back of your loan and are still due.
  3. Loan Modification: the terms of your original note are modified to a more affordable monthly payment so that you can avoid foreclosure.  The interest rate may be lowered, the loan term may be lengthened, you may be offered an interest only payment or sometimes HSBC will reduce the principal balance.  Your home must be underwater-meaning you owe substantially more than it is currently worth-in order for them to consider this option.  Usually, the amount is deferred and not completely forgiven.  This means that when you sell or try to refinance, that amount is still a lien against your home.



  1. Homeowners who are facing a legitimate financial hardship, situations like loss of job or income, excessive high debt, lack of financial reserves, and increased expenses.  Loss of equity alone is not a valid acceptable reason for a loan mod.
  2. Borrowers must be able to document their income with paycheck stubs, bank statements, award letters, etc.  They must complete a financial worksheet which details the household monthly income, monthly expenses and assets.  This information will then be used by HSBC to determine if the current mortgage can be modified to an affordable payment.
  3. HSBC requires that the home be your primary residence, and rental or second homes are not usually allowed under the loan mod program.


  1. You will be asked to complete an application which includes your monthly budget information, detailed on the financial worksheet.  Your household income,

    Budget Requirements Displayed

    expenses and assets will all be carefully reviewed and based on what you report on this form, you will either qualify for a loan workout or be denied.

  2. You must be able to prove any income you report to HSBC, room mate income is allowed as well as rental income.  The bank uses a standard formula to determine if your income, expenses and assets fit into the approval guidelines.  IF you show too much or too little income then you will be denied.
  3. You must write a brief explanation of why you need a loan mod, this is called a Financial Hardship Letter.  It is best to keep it to one page, and hit the major acceptable reasons, such as loss or reduction of income, increased expenses, lack of reserves or high monthly bills.
  4. Complete the application form carefully and legibly, sign where needed and provide proof of income.  Make a copy package for yourself before you send it in.  Follow up one week later to confirm that HSBC has received it.  Follow up once a week and keep a written log of every contact you have during the review process.

Find out if your financial situation qualifies for a loan modification-use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This program was designed specifically to help homeowners apply and qualify for a loan workout.  The Calculator automatically computes and displays

Calculator Incl-Download immediately!

your own specific income, expense and asset requirements.  Make sure your financial worksheet is completed accurately and shows acceptable budget figures.  Visit today.

6 Responses

  1. adrian herzfeld Said,

    i am with hsbc bank currently in foreclosure. had my first meeting with a referee and waiting for the lawyers paperwork. tried modification over a year ago but they did not do anything . we hired a brokerage firm and basically were not able to work with the bank. paid them seems to me that hsbc is very difficult to deal with. they always wanted updated papers from us we sent them and hsbc mentioned that they did no receive them. what is going to happen with our situation? wil i loose or be able to work something with hsbc a payment and stay in the house?

    Posted on February 9th, 2012 at 11:21 am

  2. admin Said,

    HSBC can be difficult to work with because they did not agree to participate in the federal programs, so no one is looking over their shoulder or monitoring them. They are one of the largest banks in the world and have plenty of assets as well. However, they will offer a loan modification as long as you can provide them with acceptable financial information. Your monthly income, expenses and assets will all be reviewed for acceptability. You must show them that your loan can be modified to an affordable monthly payment, but that it will ALSO benefit HSBC by making it cheaper to keep you in the home instead of foreclosing. You can get help to prepare your own budget correctly-use the Loan Mod Calculator to automatically compute and display your own specific budget requirements.

    Posted on February 9th, 2012 at 1:06 pm

  3. adrian herzfeld Said,

    maybe i can sleep a little better tonight now we are waiting for the paperwork from their lawyers and that is exactly what you mentioned. to fil again monthtly statements such as expenses etc. now we owe over $380,000 from the original $294,000 because of being late. could they tag the to back of loan, lower the principal or lower the interest. any idea how long this could take. the other thing would the y take into considertion my moms condition if mentioned since i live close by and help her (not well elderly)

    Posted on February 10th, 2012 at 7:39 am

  4. adrian herzfeld Said,

    should i mention that we have a child of special needs education, and that if their grandmother finds out the situation we are it will definitely send her over the top to say the least.

    Posted on February 10th, 2012 at 7:43 am

  5. Mary Brady Said,

    Reading all these blogs are really making me upset! I am a credit specialist..please call for free advice 18005332349…maybe we can help, we have been in business for over 30 years.

    Posted on May 15th, 2012 at 12:19 pm

  6. Bluemel922 Said,

    I hope you have better luck adrian. I’ve been fighting with HSBC for 4 years. My husband and I both lost our jobs at the same time, and they still wouldn’t listen to us. They gave us a 6 month modification and that was it. Then we were right back where we started. They’ve lost paperwork, and also stated they requested certain items of which I never received the request. Now we’re in foreclosure. I give up at this point. Sometimes it’s better to just walk away and try to start over.

    Posted on February 13th, 2013 at 12:00 pm

Add A Comment