HSBC, bad faith, unfair, or just incompetent?

[rperry101]

My wife had a loan with HSBC on our primary residence. Both of us had business failures and she couldn't make the payments. She was in foreclosure and I went to a HUD certified housing agency for help. Meantime she had gotten a job as a manager of a clothing chain store and was making money. I am a retired attorney. The HUD certified housing agency needed a housing counselor. I was hired. Now I am making good enough money. I send a hardship to HSBC. They say that they will consider a loan mod when they have two pay check stubs. I get paid once a month. The first of August I submit paycheck stubs. We are now making $5,700.00 a month. I call HSBC after faxing the information. I am told by a representative that they will cancel the sale date if we wire them $5,800 by Western Union no later than Sept 25. I had turned this over to a fellow counselor as I couldn't deal with it myself. He obtained the proper information including reference number, city, etc. On Sept 23 we scraped up all the money we had and wired the money. We had 40 cents left after wiring the money. On September 24, the counselor called and verified that the payment had been accepted and the sale date was canceled. On October 1, 2008, we received a notice from the trustee stating that the property had been sold to HSBC and we had 10 days to vacate. I tried to call HSBC, but kept getting the run around. My wife emailed HUD with a complaint. I faxed HSBC's loss mitigation department with a copy of the complaint. HSBC phoned me within a half hour to tell me that they were aware of the problem and I should call back this afternoon. Stay tuned.

[rperry101]

I called and was told that it was out of their hands. They had rescinded the offer. The customer rep said, "Didn't they send you your money back? Didn't they tell you the offer was rescinded?" The answer, of course, is no to both questions. I tried to call back to talk to a manager. Now as soon as I input the account number I am bounced to a recording that says that they are closed even though it is only 6PM EST and the recording says that they are open until 9PM. I have faxed and emailed HSBC's New York office, the Oregon Attorney General, and HUD, both the state office and Washington, DC. We are now looking for other housing. Anyone want to join in a class action suit? Stay tuned.

[Moe Bedard]

rperry,

Welcome to the forum and thank you for joining..........

Have you consulted with an attorney on this at all during the process? It would seem that it is too late for any resolution...............but here are some contacts that you might not have..........

HSBC Corporate Headquarters
1-716-841-2424

HSBC Default Resolution
1-888-648-3124

[rperry101]

Thanks for the reply. It is not too late for a resolution, but HSBC doesn't seem to be willing to do anything except bury their head in the sand. Yes, I have talked to attorney friends and I am a retired attorney with 25 years experience in contract law and bankruptcy law. My wife is ready to move. The house has a lot of deferred maintenance and is not worth what we would have owed had the loan mod been approved. Oregon has no deficiency on foreclosures so we walk away debt free and HSBC is going to take a bath. I suppose they think they will somehow come out ahead because of the bailout which doesn't exist yet. We have sent HSBC a demand letter urging them to consult legal counsel in Oregon, but I doubt they will do anything. I will sue them after we move. Hopefully I will be their creditor in a year or two. Hope they don't go belly-up before then. Thanks for the forum. It's good to vent.

[Moe Bedard]

Well thanks for coming here to vent...........

Good Luck with the fight...........I hope you do hold their feet to the fire........their investors are real nasty to deal with........they think a 6 month modification will solve the mortgage meltdown.

[rperry101]

Update!! I was up most of last night faxing and emailing complaints to every conceivable entity that I could think of. HUD, FTC, Attorney General, HSBC corporate, congressmen, senators, you name it; if I could find an email or fax number, they got a copy. This morning we attempted to call HSBC again. Calling the loss mitigation was the same as yesterday. When we enter the loan number, we get bounced to a recording saying they are closed. Then my wife got through this morning, she was connected to a person in the foreclosure department, a Maria. Maria was going to blow her off, but said she would look at the hard file. She came back and said that somebody had made a terrible mistake. They had failed to notify the trustee to take the property off the sale list. She even admitted that they had sent a letter to us rescinding the agreement after they had discovered the error. She said that they had also returned the money that we had paid, but we haven't seen that yet.

Anyway, she said that it was being corrected and that we would get our loan mod in the mail and that we should stop packing.

I sure hope she wasn't mistaken. We have been lied to so many times by HSBC over the course of this loan that I have lost all trust in them. I'm hoping that there will be some provision in the new bailout or legislation to come that will give us a way out.

I'll let you know if the sheriff shows up this weekend to kick us out.

[Moe Bedard]

Well that is certainly a better update.........

Keep us posted on how it all pans out...........