HSBC does not have to obey state laws
From E.W. in California
June 15, 2009 California passed a law providing a stay for further foreclosures in California until the banks could show compliance with Obama’s programs for keeping homeowners in their homes.
I was in the midst of negotiating with HSBC for some resolution for my home being foreclosed on when HSBC in November foreclosed on the property. Apparently HSBC does not recognize local laws nor do they attempt to keep people in their homes.
A little research discovered that HSBC obtained some sort of Federal exemption to the California law allowing them to proceed with foreclosures in California because they are Federally regulated. Um, all banks are federally regulated to operate in the U.S.
HSBC does not have a permanent loan modification program in place to reflect the Obama administration guidelines for keeping homeowners in their homes. If you are lucky you will be given a 6-month reduction of $100-$400 and IF you reapply for their Infamous hardship program HSBC MAY consider your loan a permanent modification. Good luck with that getting approved and made permanent.
Bottom line is HSBC will foreclose on you and will not even blink an eye. They are a Sub-Prime lender and they have an enormous history of Predatory lending practices as detailed in a Los Angeles Superior court case where the Attorney General Sued HFC/HSBC in California. HSBC shareholders also sued for Predatory lending practices not being disclosed to shareholders in Chicago Federal court in 2005. That cost HSBC a share cost to shareholders of $23.87 or just over $1 Billion.
Let them foreclose and find a lawyer to consult with. I’m sure there are truth in lending issues with every loan and in California if these truth in lending issues are discovered then the bank has to pay your attorney fees. Good Luck