Mortgage Forum

Mike

I must apologize for lengthy-ness of this post but I really must tell the story. My husband and I have a ARM mortgage with HSBC. Each time the rate adjusts, the payment goes up $200 - $300. The company I worked for, for 5 years closed down so, I'm now working a temp job and as a result, my husband and I have had a 20% reduction in income. We tried several times to refinance, modify and any other solution we could think of to save our house. HSBC DID NOT want to work with us. So, due to this, we have decided we have to walk away. The foreclosure process has been started and the sheriff's sale was March 5, 2008. I'm almost sure the house was not sold at this auction as Michigan is leading the country on foreclosures. I've been getting at least 2 calls per week from very rude debt collectors on behalf of HSBC. I've told them several times that we intend to move out (in the next 2 weeks) and mail them the keys to the house. (My husband has accepted a job offer in another state) Is this decision wise? The last collector that I spoke with said they were not aware of the house being in foreclosure. I'm wondering if this is possible since HSBC is the mortgage company and hired the collection agency to collect the debt. Would it be easier for us to ask HSBC if we can start a deed-in-lieu of foreclosure or, just let the house go through the whole foreclosure process as short sell is not a viable option here in Michigan where almost each and every street you go on has at least 4 to 5 empty houses due to foreclosure and abandonment.