If you’ve been impacted by the coronavirus and are worried about making payments on your HSBC mortgage or home equity, we can help.
For mortgage and home equity accounts, we’re offering assistance with your payments – we can defer your payments during the COVID-19 related financial hardship and waive late fees. Our payment deferral program is a forbearance, which provides temporary relief by suspending your regular monthly payment. The length of the forbearance depends on your situation. For a financial hardship due to COVID-19, the forbearance period is typically 90 or 180 days, but we will extend up to 360 days at your request.
Who can request enrollment?
You can submit a request if:
- You have an HSBC mortgage or home equity;
- You’ve been directly or indirectly impacted by the coronavirus; and
- Your ability to make your monthly payment has been temporarily affected, or you’re expecting it to be – for example, you’ve lost your job or you’re having to work less hours.
How will this work?
Once you’re enrolled, there'll be no monthly payment due during the forbearance period. We will not assess any late fees during this time either. Please keep in mind that a forbearance does not mean your monthly payments are forgiven – after the forbearance period ends, all missed payments during your forbearance will need to be paid. If you aren’t able to make a lump sum payment at the end of the forbearance, we will work with you on a repayment plan, loan modification or other payment assistance. Before the end of the forbearance term, we will contact you to evaluate your current situation and determine next steps. We encourage customers on forbearance to keep us apprised of any changes to their financial situation and to let us know if they can resume monthly payments. We also encourage our customers with escrow accounts to make their monthly escrow payment where possible to avoid escrow shortages.
If you make your payments by automatic draft, it will be cancelled to ensure payments are not drawn during the relief period. If you pay by recurring transfer set up through online banking or a third party, you’ll need to cancel this on your own. At the end of the forbearance period, we will work with you to re-establish the automatic payment draft.
What loss mitigation options will be available after the forbearance?
- Add delinquent payments to the end of the term.
- Reduce the interest rate.
- Convert an adjustable interest rate to a fixed interest rate.
- Extend of the length of the term of the loan.
- Forbear some of the principal balance. This means setting aside a portion of the total debt before calculating your monthly payment. The customer typically has to pay the set-aside portion in a balloon payment when refinancing or selling the home, or when the loan matures.
What if you have an introductory or promotional rate on a Home Equity account?
An introductory or promotional rate will continue to apply for the remainder of the introductory or promotional period.
Can you still use your Home Equity line of Credit?
If you are able to keep making your regular payment during forbearance, you’ll still be able to use your line of credit as normal during the relief program period.
If you do not make your regular payment during forbearance, your credit limit may be reduced or suspended.
How do you request enrollment into the relief program?
We have established a team of Mortgage Servicing Specialists (SPOC TEAM) to provide information and assistance to customers related to mortgage loan accounts and our loss mitigation process. If you would like to contact the SPOC TEAM, we can be reached Monday through Friday from 8am – 8pm or Saturday from 8am – 5pm ET at:
Will this affect your credit report?
During the forbearance period, we will report your loan to the credit bureaus as participating in a forbearance plan resulting from a declared disaster with no payment due. If your account is current at the time of enrollment, we will report your Account Status (as that term is defined by the credit bureaus) as current throughout the relief period. If your account is delinquent at the time of enrollment, we will not report any increase to your delinquency during the relief period. After the forbearance period is over, we may report your account as delinquent to the extent permitted under federal and state law until it is brought current.
What if you’ve already missed a payment?
You can still request participation in the forbearance program by calling us at 855.806.4657 Monday through Friday 8am – 8pm or Saturday 8am – 5pm ET.