Household HSBC Watch

Major mortgage lenders have agreed to streamline and speed up the process for assisting distressed homeowners, according to new guidelines set to be released today (June 17, 2008). We will monitor complaints in relation to promises. Under the guidelines, the lenders would acknowledge a borrower’s request for help within five business days and approve or deny a request within 45 days of receiving the application, according to people familiar with the agreement. Lenders will also update borrowers about the status of their application after 30 days. Will HSBC Finance be able to handle this? Who is to say they will even be a part of it? Look at how poorly they are doing right now:

“I faxed, overnighted, repeatedly called and PLEADED with them to give me a decision (one way or the other), as the closing date was rapidly approaching…” (this homeowner was later garnished after a failed short sale. They thanked HSBC for the failure.) In another case the homeowner went into foreclosure after HSBC claimed they (HSBC) could not find their paperwork. (HSBC later purchased the home at auction for $30,000 than the amount of a failed short sale.) You may see these reports and many more in our complaints blog.