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HSBC Bank Policy Designed to Destroy Homeowners who want to Avoid Foreclosure.

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?

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Comment by Jesus (Jesse) Gonzalez on October 10, 2013 at 10:21am

Status Update as of 10/10/2013 - Email Communication from US Bank to Me.

Hi Richard and Chantee,

 

First off, thank you for your expeditious consideration as HSBC, the primary lien holder has set a foreclosure sale date of 10-24-2013.

 

As to the short sale department not receiving a packet, this is really disheartening and dismaying. Here is why,

 

From phone calls into 1-855-698-7627 where we spoke with Ilene on 10/2/13 @ 3:13 pm cst, Tasha on 10/3/2013 @ 3:22pm cst, Joy on 10/7/2013 @ 8:40am cst, Richard Ashley on 10/7/2013 @ 9:50am cst and finally with Chante White on 10/7/2013 @ 12:53pm cst who were all nice enough to not only recognize docs have been received and not imaged and where Chantee even went above and beyond to open an Assist Request to find out what happened. So, with that being said, can you please tell us how your email server gave us a delivery receipt and Ilene, Tasha, Joy, Richard and Chante were all able to see docs received however, now your short sale department claims they never received them?

 

None the less, I have attached the short sale package to this email now. I am sending it directly to Richard Ashley and Chantee White as well as CC ShortSaleRequest@USBank.com as well as CC’ing other important people on this email who may find these results very interesting, to say the least.

 

NOTE: HSBC, the primary lien holder has as hard foreclosure sale date set for 10/24/2013 and if we are not closed and funded by then, US Bank will be wiped out and US Bank will get nothing!

NOTE: I am also going to be sending a copy of these correspondences to the Consumer Financial Protection Board as well as the US Bank Executive Committee Richard K. Davis, Jennie P. Carlson, Andrew Cecere and James L. Chosy.

NOTE: A further lack of accountability on this file by Monday 10/13/2013 will result in a press release to our local news affiliates consumer protection departments for further assistance.

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