HSBC The Worlds Local Unhelpful Bank

RichAnd_2

Hi,
New here and advice or comments welcome please.
My now ex-wife and joint owner of our house vacated in February this year also ceasing any joint liability payments, mortgage, insurances, etc. I could not afford the repayment mortgage on my own and as she refused to contribute anymore, I contacted HSBC and after hours of explaining they switched it to an interest only mortgage for 6 months as the house was also then on the market, I remain in the property and keep it well maintained. The 6 months have just expired and the house has not yet sold (the price has been dropped yes) so I contacted HSBC again advising of the situation and that I can afford the interest only option, which means their loan is being serviced, but not the huge original repayment mortgage and could they extend until a sale is achieved. They have point blank said no and they can do nothing about it now until I default, at which point their mortgage arrears team will be in touch! Why, when I can meet the interest payments would they allow it to default???
Thanks

DannyboyMidlands

Because they think that you are messing them around?

From their point of view they are not a charity, have given you 6 months grace but you are not serious about selling it. If you default, they can repossess and sell it themselves.

Thrugelmir

RichAnd wrote: »

My now ex-wife and joint owner of our house vacated in February this year also ceasing any joint liability payments, mortgage,

The job of the bank isn't to resolve your own financial issues. Your ex-wife still carries liability.

Reduce the price of the property until it sells.

SGE1

DannyboyMidlands wrote: »

Because they think that you are messing them around?

From their point of view they are not a charity, have given you 6 months grace but you are not serious about selling it. If you default, they can repossess and sell it themselves.

Bit harsh?

I hardly think interest-only payments are "six months grace".

And it makes no financial sense for HSBC to repossess the property. They'll incur costs and they'll sell the property for far less at auction.

So given that the Government has been pushing banks to be more accommodating to avoid arrears, and customers are always encouraged to contact their mortgage providers early and discuss issues before it becomes too late (which is exactly what OP has done), I think it's very surprising that HSBC are taking this attitude.

I would say, yes reduce the price of your property, and keep trying to speak to HSBC about it.

RichAnd_2

Thanks SGE1,

Was a bit harsh above indeed. It isn't charity I am looking for it is sensibility to pay at least the interest on the mortgage loan, given the ex-wife has totally washed her hands of the liability and disappeared and HSBC's opinion is it is a joint mortgage so they do not care who meets the repayments as long as they are paid.

The property has been reduced in the 6 months and will be reduced again now so it's not like I'm not being pro-active in trying to sell it or 'messing them around.' I will continue to try and reason with HSBC to avoid an arrears situation though.

Thrugelmir

RichAnd wrote: »

HSBC's opinion is it is a joint mortgage so they do not care who meets the repayments as long as they are paid.

Not an opinion by HSBC. Its the legal contract you entered when accepting the mortgage offer.

If you don't know where your ex is how will sell the house?

RichAnd_2

Indeed it is a legal contract, one which I wish to still honour.

The ex is in touch very occasionally via email/text but no forwarding address since it was originally put on the market. She will reappear no doubt when it does sell but in the meantime I'm left with it.

TEDDYRUKSPIN

Apart from the above, unless you have less than 60% - HSBC usually say no. As the above, both you and your ex-wife will have poor credit history and will find it difficult to get a decent mortgage or until your credit history is cleared.

DannyboyMidlands

Harsh but fair. You've been messing around for 6 months. That doesn't sound like somebody who is committed to sell. In fact it seems like you were trying to play chicken with them and they've called your bluff. Price it realistically and sell the thing. Job done.

MacMickster

SGE1 wrote: »

And it makes no financial sense for HSBC to repossess the property. They'll incur costs and they'll sell the property for far less at auction.

Surely any costs incurred by HSBC would be passed on to the borrower.

Additionally, as long as the house sells at a price sufficient to recoup their loan (plus costs) then why would it concern them if the property could have sold for more given time.

My advice to the OP would be to reduce the asking price significantly to try to achieve a quick sale. You don't have the luxury of time to hope that someone will eventually turn up who will pay the current asking price.

The stance taken now by HSBC is probably because they don't believe that you have been proactive enough in trying to sell the property during the period of grace that they initially granted.

Thrugelmir

MacMickster wrote: »

Additionally, as long as the house sells at a price sufficient to recoup their loan (plus costs) then why would it concern them if the property could have sold for more given time.

Speculation as to value of property. Banking works on facts, Houses do get trashed by those vacating on occassions.

Forcing a sale is the best all round solution for all parties.