NEARLY half of all mortgage shoppers use the Internet to do research on mortgages. If your research got you to this website you have reached Household – HSBC Watch consumer advocates, a watchdog organization not affiliated with HSBC in any way. You are doing your homework, however, and digging deeply. Perhaps HSBC bought your mortgage, or more accurately, the servicing rights. Did you have a second mortgage or home equity line of credit with HSBC, but a mortgage with another lender? Foreclosures whereby HSBC has no rights to the first mortgage, thus HSBC has a subordinated position, leaves HSBC without anything if the property goes to bankruptcy and foreclosure.

If HSBC obtains the first mortgage then they are in a more powerful, albeit precarious position. There is very little incentive for mortgage companies to bail out homeowners, regardless of what the experts say. Customer service reps may string people along to get as many payments as possible, but a bailout with new terms is highly unlikely. Investors would sue, profits would tumble, and income from the payments would not be there. Consider the fact that banks must be adequately capitalized, but with too many foreclosures and fewer mortgage payments coming in, banks are at risk.

Are you considering a mortgage offer from HSBC? Please read our complaints blog first. It is an extensive collection of reports from customers.

HSBC may not have the same problems as smaller regional banks, because other units within HSBC can fund, finance, or prop up a failing division. Is HSBC Bank NV adequately capitalized, or qre the requirements different? By the same token, which small banks will be closed by the government? Yes, some other bank takes over the accounts and customers simply go to a different bank on Monday morning. But what is going on behind the scenes?

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