Consumer complaint received 2022-01-28
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
COMPLAINT No.1 : In early XXXX, my wife ( XXXX, mortgagor ) and I ( XXXX ) agreed to a mortgage modification agreement with HSBC Bank USA N.A . in connection with a property consisting of four lots located at XXXX XXXX XXXX XXXX. in XXXX, NY that they had purchased in XXXX of XXXX. As a condition, HSBC exercised its right to set up an escrow account for the payment of property taxes and insurance on the property. Although we then made timely payments from XXXX through XXXX of XXXX, we learned in XXXX from their purchaser that three of the four lots securing the mortgage had been sold at auction by the county for non-payment of the full amount of property taxes due. Considering this to have been a material breach of contract by HSBC, we notified HSBC that we were suspending payments and began trying to engage it in a substantive discussion of the matter. 

COMPLAINT No.2 : In XXXX of XXXX HSBC XXXX fully aware of the status and condition of the property - offered to take title to it by deed in lieu of foreclosure and promised us a {$7000.00} relocation payment if we vacated the property and left it broom clean by the end of XXXX of XXXX. We accepted and performed to HSBC 's documented satisfaction within the time period specified, only to learn in XXXX of XXXX that HSBC would not honor its commitment due to a question of title marketability raised by XXXX, which was based on an erroneous assumption by that agency. All further attempts by us over the next two years to arrive at a mutually acceptable resolution were met by responses by HSBC that can only interpreted as a complete unwillingness to further discuss the matter in a substantive manner. 

COMPLAINT No.3 : In an attempt to explain the grounds for HSBC 's unwillingness to take responsibility for neglecting to pay the full amount of property taxes due back in XXXX, HSBC Vice President/Head of Customer Relations XXXX XXXX, in a letter to us dated XX/XX/XXXX ( copy provided by her to CFPB ) made a materially false statement to the effect that HSBC has advised us that it was making payments on only " the lot that contained the home '' ( her words ), and not " the other three lots. '' To substantiate this claim, she referred to a letter from HSBC to us dated XX/XX/XXXX ( predating by over a year the coming into force and effect of the mortgage modification presently in effect ) which contains no mention whatsoever of HSBC 's actually separating the lots or treating them differently for any reason or purpose. Furthermore, neither the mortgage modification presently in effect, nor any correspondence or notice from HSBC associated with it makes any mention of HSBC 's intention to escrow for taxes and insurance on only the one improved lot.

COMPLAINT No.4 : Counting our down payment, loan and escrow payments, improvements, and the cost of vacating, we have invested close to {$100000.00} in this property. The best HSBC has been able to come up after five years of inexcusable delays and its effective denying us of the use and enjoyment of our property for that entire time is to increase our relocation payment by {$3000.00} to {$10000.00} for a deed in lieu transfer of title. 

COMPLAINT No.5 : Finally, our cost of living has been higher over these past several years due to our inability to recover any of our investment in the property thus far and the derogatory credit reports HSBC has been submitting to the credit reporting agencies. Both my wife 's credit score and by extension, mine, are so low that we can not qualify for anything but the highest interest rate credit cards and are unable to borrow for any kind of refinancing on the property we presently occupy.

Company response to consumer: Closed with explanation