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HSBC is cutting back in the U.S. after its 2003 purchase of Household International Inc. required it to set aside more than $65 billion for bad loans

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Deed in Lieu results in foreclosure by HSBC and HFC

CT in Kentucky said: “Around the end of July or first of August, we called HFC to set up a deed in lieu of foreclosure. I spoke with Brian Bankos who told me that Susan Mahoney would be in charge of our account. He told me to call back around the 5th or 6th of August or that she would be in touch with me before then. Since then, I have kept in contact with her at least once every two weeks, if not more, to see where we were at with the process.

Before we began this deed in lieu process, we had been given a hardship in which we paid one payment. When I spoke with Susan, she assured me that the deed in lieu would be completed in 30-60 days so we quit paying our mortgage payments and moved out of the house so they could begin the process. They went ahead and changed the locks, performed inspections, and had someone come and take photos of the house to send to HFC for their records.

We had to find a new place to live so that they could get the deed in lieu completed. They informed us that they would not even begin the process until the home was vacated. I also asked her about the property taxes and insurance and she said HFC would pick up the insurance and the taxes would also be paid by HFC. I asked her what we would be responsible for in regards to fees or any other money and she said we would simply walk away owing nothing.

Since then, when I have spoken to Susan, she has told me that there was a hold-up on our account because there was a lien against our property with Countrywide Home Loans. We have never even had a mortgage with Countrywide Home Loans.

When we first purchased the home, we went through Eagle Mortgage and refinanced two years later with HFC. There were never any issues when we switched over to HFC. Susan assured me that their attorneys were working on getting that lien cleared up but that they were having trouble contacting Countrywide Home Loans to get it resolved. In the meantime, she told me to continue checking back with her and that it would be completed as soon as possible. This went on for several months, all the while, we were not paying a mortgage payment.

On March 2nd, I spoke to Susan and she told me the same thing, that they were still trying to get the lien cleared up. HFC had also already served us with foreclosure papers using the same attorneys that were supposedly working on our deed in lieu. They began the foreclosure process and that is what we are dealing with now. We have a set court date in which they will be determining when to sell our home and all liens will be extinguished from our home.

When I called Susan on Wednesday, March 24th, she informed me that they had closed our deed in lieu after the first of the month because they couldn?t get anywhere with Countrywide Home Loans. No one had called us or contacted us in any way notifying us of what they had decided. She said that she was too busy to call me. Until then, we had been under the influence that they were continuing to work on the deed in lieu for us.

Now, we have horrible credit because we stopped paying our mortgage when they assured us we would be done with a deed in lieu and we have lost our home. If they had not made us move out or just told us that they weren?t able to clear up the lien, we could?ve made payment arrangements to keep our home. We won?t be able to purchase another home or vehicle for years because we will have a foreclosure on our credit. Not only did HFC treat us poorly but also Countrywide Home Loans because we never even had a mortgage with them.”

Posted By Timothy Blake

HSBC Watch is a watchdog and consumer activist coalition.

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UPDATE NOTE: HSBC car loans were sold to Santander USA in 2010 :: Most HSBC credit cards became Capital One credit cards in 2012 :: HSBC horrible predatory home mortgages are in run-off