HSBC Bank Policy Designed to Destroy Homeowners who want to Avoid Foreclosure.
I currently have a client who has two liens on his home. The first lien is with HSBC and it’s a conv. fixed rate 30 year mortgage. The second lien is with US Bank and it’s a Home Equity Line of Credit. In order to avoid foreclosure, my client originally approached both lenders and requested a Deed-in-Lieu however, the lenders advised him to complete a short sale. He finds me, we list the home for sale, and get an offer that pays off the first lien in full, as per the HSBC pay off letter and pays the second lien nearly 60% of what they are owed. This past weekend, we received notice that HSBC has decided to set a foreclosure sale date of 10/24/2013. We notified US Bank of the pending HSBC foreclosure and they have opened an Expedited / Assist request in order to escalate our offer through their system for a quick decision on the short sale. We have contacted HSBC to notify them of this development with US Bank and requested HSBC to postpone the foreclosure 45 days in order to give US Bank enough time to complete their process. As of right now, HSBC is refusing to postpone the foreclosure any length of time.
The baffling part of this issue is that it appears, by HSBCs actions, they would rather incur the cost of foreclosure, attorney fees, court cost, preservation cost, disposition cost and REO cost in general in order to purposely avoid the short sale and avoid getting a pay off in full. So, my question is, why would a bank do this? Do the bank’s executives know this is how their short sale / foreclosure / loss mitigation departments are being run? Do the bank’s executives know that they have policies in place that hurt themselves, hurt the homeowners, hurt the local communities, creates a situation where no one wins?
I suspect that if an Executive at HSBC saw my clients case, they would step in and fix this. I suspect that if an HSBC investor saw what was going on here, they would step in and do something. In fact, I suspect that if anyone at HSBC would stop, look at this situation, evaluate their policy and see how this doesn’t make any sense what so ever, they would step in and help us but, so far….no help at all.
In order to bring national attention to this issue, I am going to use my network to its fullest capability. I am going to list the names and dates of the people I spoke with at HSBC in hopes that someone…anyone who can do anything….even if it’s nothing more than some advice, will step in and help.
A list of HSBC employees who haven’t been able to help us or haven’t been willing to help us….
10/8/2013 @ 8:11 am cst called into 1-855-698-7627, Got a call from Mrs. Mantra who was calling me on behalf of Mrs. Danielle Paschale. I was transferred to Sandra Scott who transferred me to supervisor Dania. Call ended with no resolution other than I needed to talk with Foreclosure.
10/7/2013 @ 4:06pm cst I called HSBC 1-800-395-3489 and spoke with Sandy, who said I needed to talk with my Single Point of Contact Danielle Paschale. Danielle wasn’t available so I was transferred to Chris in Modifications. Chris said I needed to speak with Danielle Paschale or someone in HSBC’s customer relations department. Transferred me to customer service who gave me Danielle’s number and said I need to call her.
So, the end result, no one was able to give me an answer, no one took accountability for the file and in fact, I am back to where I started, with a call into Danielle Paschale who is likely going to have Mrs. Mantra call me to tell me she can’t help me so, who can? Better yet, who will?