Consumer complaint received 2024-05-29 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: IL

Complaint narrative:
In XXXX, I applied for an HSBC XXXX XXXX which was denied in XXXX. I informed HSBC that it had made mistakes in its evaluation. I received letters from HSBC on XX/XX/XXXX stating the case would be reviewed, on XX/XX/XXXX stating HSBC was conducting a thorough review, and on XX/XX/XXXX stating that the modification request was denied, again. I again advised HSBC that it was still making clerical / numerical mistakes and asked it to share with me the income / expense information it used to deny my application. HSBC did not provide that but in XX/XX/XXXX it approved the loan modification request, conceding in a XX/XX/XXXX letter ( Exhibit A ) to a long list of errors, mistakes, and excuses, admitting that the modification should have been approved in the first place. 
Thus, for XXXX months, HSBC XXXX XXXX XXXX me and my time asking me to provide all sorts of documents, not just once but repeatedly because it said it misplaced or lost them. By its own admission, it failed twice to correctly evaluate the lawful application. 
To proceed, I asked XXXX to provide me with the text of the Modification Agreement it wanted me to agree to, a priori. HSBC refused. Therefore, I did not agree to the proposed modification. 
In XX/XX/XXXX, without my permission or consent, HSBC decided to cancel the monthly XXXX mortgage withdrawal from my bank account which has been in effect for XXXX years, in violation of HSBCs own rules ( Exhibit B ). In an XX/XX/XXXX letter ( Exhibit C ) HSBC admitted to this violation. I advised HSBC that the funds were in my account and it should resume the XXXX withdrawals. HSBC refused to withdraw the funds and instead sent me a Notice of Intent to Foreclose on XX/XX/XXXX. My excellent credit score in XXXX ( Exhibit D ) dropped to XXXX as the result of this refusal and the derogatory reports HSBC made to the credit bureaus ( ( Exhibit E ) even though I consistently advised HSBC ( e.g., letters of XX/XX/XXXX and XX/XX/XXXX, Exhibits F and G ) that the standing authorization to withdraw the monthly mortgage payments remained in full force and effect, that I had not revoked it, and that the funds were in the account for it to withdraw. 
HSBC informed me on XX/XX/XXXX that it was foreclosing on my house. This caused me significant XXXX XXXX and further damaged my credit. I received notice that the foreclosure was recorded on XX/XX/XXXX ( Exhibit H ). In other words, HSBC, against its own rules and against my advice, refused to collect the monthly mortgage from my bank in order to force an unlawful foreclosure. 
HSBC ultimately XXXX me to buy a cashier 's check for it, covering the mortgage payments for the months it refused to withdraw, and mail it to HSBC. I did that. Yet, evidence shows that despite this full payment and despite HSBCs pledge to cure the derogatory reports on my credit, my excellent credit score was not restored for many years, all because of HSBC. 
When I tried several times in XXXX to XXXX the house through third party lenders, I was turned down ( for example, Exhibit I ) because of a low credit score. The same in XXXX, when the XXXX for someone with an excellent credit score were at 2.5 %. The impact of HSBCs unlawful foreclosure filing had remained. 
Recently, HSBC sent me a letter stating that the interest rate on my variable rate mortgage would be increased to 8 % effective XX/XX/XXXX. This significantly increases the monthly payment. The rate is significantly higher than the current rates or the 2.5 % I could have had were it not for HSBC 's derogatory reports and foreclosure filing. 
In summary, because HSBC : ( a ) admitted ( Exhibit A ) that it repeatedly failed to conduct its loan modification process properly, ( b ) refused to provide the full text of the modification agreement so I can read it prior to committing to it, ( c ) violated the terms of its loan agreement by stopping the XXXX withdrawals against my repeated advice and without my consent ( Exhibit B states : to cancel automatic transfers The consumer must revoke authorization directly with the originator which I clearly did not ), ( d ) caused damage to my credit by reporting derogatory information resulting solely from its own willful act, ( e ) XXXX filed and put foreclosure notices in public records and newspapers, and ( f ) thus, this all effectively prevented me from refinancing my home at rates as low as 2.5 %, Therefore, I ask HSBC to take several actions.

Attachments : Exhibits A, B, C, D, E, F, G, H, and I.

Company response to consumer: Closed with explanation