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Used HSBC for the mortgage on a new property. Simply put we were 'porting' our current HSBC mortgage from the old to the new house and taking out a second HSBC mortgage to cover the difference. The maths was Mortgage 1 + mortgage 2 = the price of the new house (minus what we put in in terms of equity on the old property).
HSBC applied the following maths. Mortgage 1 - mortgage 2 = £97,000 short of what we needed. I voiced concern this was wrong and this was ignored for 10 weeks straight, despite repeated e-mails and phone calls. 2 days before exchange our lawyers got involved and pointed this out. HSBC finally accepted the mistake as one of the advisors having made a cock-up. I expressed dismay that the mistake wasn't picked up by underwriting and the fact there's a single point of failure that can go all the way through to exchange.
I wrote a letter asking HSBC to alter their procedures so no single mistake could go through to exchange without a second check to detect it, a relatively easy process to employ. HSBC refused stating it was 'too difficult' to implement this. From someone that works in a safety related industry where procedures change the whole time I know this not to be true. HSBC then suggested it was the lawyers that were to blame, ironic when it was the lawyers that THEY INSISTED I use. That cost me £1004 in cancelled legal fees from the original lawyers I instructed. Again HSBC denied any wrongdoing as it's in their terms and conditions. I might also remind them 'learning from mistakes and putting things right is also in the T&Cs but they failed to do that by refusing to change very poor procedures. HSBC then went on to suggest I was the second line of defence on mistakes and I should have picked up the mistake.
I pointed out I was not a financial adviser but I had highlighted a mistake and I had been ignored. Ironically then HSBC seemed to ignore me when I further pushed this point. I would summarise they actively encourage weak procedures so they can use plausible deniability. In the end I was offered £250 and the ombudsman agreed this was fair because the legal issue and the procedures issue they do not look into as it's not their area of responsibility. I contacted the FCA who seemed largely disinterested but 'added it to their statistics'.
Now I know how the 2008 financial crash occurred. In my industry this standard would not be accepted. Taking my mortgage and bank elsewhere at the end of my fixed mortgage term. That will cost HSBC a lot more than £1004 I can assure them. In summary a totally incompetent and mismanaged process, and very unlikely to be a one off given the weak procedures to prevent such things happening.
Extremely incompetent, disorganized, rude, lack of responsive communication, very difficult to contact, resulting in a delayed, very stressful nightmare of an experience getting a home mortgage. AVOID USING THIS COMPANY!!
Along with everyone else they took advantage of us. When my wife and I had poor credit in 2006 they refinanced our home at over 11% interest rate. Things got worse and had to declare bankruptcy in 2012. Fought with them for over a year to get a hardship for my chapter 13 bankruptcy and they allowed 5% interest rate for the life of bankruptcy and once discharged back to 10.86%. I do not remember receiving anything about the class action suit and as a result we missed out. Our credit is now 740 plus. They sold our loan to SPS Servicing and can't do anything about these cold hearted thiefs! Getting house refinanced with VA loan now. I can't believe criminal charges were not filed.
I refinanced with them in 2007 for $232,000 mortgage. After a divorce and caring for my dying father, I fell on hard times financially. I applied for a modification to lower the rate (it was 8.5%) to lower my payment. My credit was good and I still had a salaried job so I could have made it work with a lower rate and my now only one income. Instead they lost my documents, claiming the file was "incomplete" at least 5 times. I was up for review over and over. During this "review" period of FIVE YEARS they added late fees, never applied my escrows properly, put payments on the back end with an interest charge of 8.5% each time to the tune of $60,000.00!!! YES SIXTY THOUSAND DOLLARS! Over this time I was paying them what I could, and monthly. I still had decent enough credit to get an affordable car payment and pay my other bills, so obviously I was still making enough to not ruin my credit but they wouldn't help me.
They gave me the runaround. Every time I called, no one had the correct info and the file was all over the place, missed documents etc. I finally went to the MASS Atty General's Office and took the affordable homes course and they drafted a letter to HSBC. After HSBC received that certified letter, the next week my mortgage was sold to Caliber Loans for $293,000! And the process began again. They sold it to SPServicing within 2 months, who gave me a temporary 5 year and I am now selling this house.
THANKS to the CRIMINALS AT HSBC The loan I took out NINE YEARS AGO has an inflated balance of $292,200.00!!! AND I'VE MADE 9 YEARS OF MONTHLY PAYMENTS! HOW CAN THIS BE LEGAL?!! They took advantage of me at a hard time in my life and they should not be allowed to do this to consumers. I missed the chance to join the class action lawsuit against them and that's the second punch in the gut when it comes to this awful company.
Criminal, they love to sell your mortgage to an even nastier agency. Raise your interest, change your payment schedule without warning. Bottom line they really suck.
After reading so many bad complaints about HSBC, I had to share my experiences. HSBC had my mortgage at 7.5%. I called and asked if there was any type of refinance program and they said no. At the time I was upside down. The customer service for HSBC sucks. They told me quote: "we have you by the balls and there isn't a damn thing you can do about it". Three years ago the market changed. We are now at a 4% rate. HSBC is a horrible organization and whoever runs it should be in prison. I hope that idiot knows about KARMA.
My husband and I were a week away from closing on our real estate home that we were purchasing as a foreclosure from HSBC. Our bags were packed, kids schools were changed and we were ready to go. The attorney informed us that they made several unsuccessful attempts to get a municipal search done by HSBC. HSBC decided to terminate the contract stating that we were in breach of contract. We fail to see how we breached any contract if they couldn't provide the required paperwork for closing. Long story short don't trust them. We invested money in a home inspector and appraiser and countless other items that were necessary to close on this home and not to mention all the time that was sacrificed for it. They've had this house on the market for over 2 years and we are the 5th couple they are doing this too. Don't waste your time and hard earned money on them.
When we refinanced our home in 2006, the standard mortgage rates were in the mid 7% area. We were at 7.249%, with a 2nd mortgage rate at 10.99%. A couple years later, when the market collapsed and interest rates plummeted, we tried to refinance. Both my wife and I are Veterans, so we attempted to use a number of programs, they refused. We tried asking about doing HARP, they refused, said they didn't have to because they weren't backed by Fannie Mae or Freddie Mac.
Our existing mortgage did not include escrow for Homeowner's Insurance or Property taxes, so we were spending approximately $1650/month. Then medical issues happened, and we had no choice but to use credit. Then we got to the point where we were surviving, but not much better. We tried to refinance, they said no. We tried refinancing through another lender, but were unable to because HSBC refused to subordinate the 2nd loan. We continued to try to refinance. Then I read an article in a business magazine that said that because so much mortgage business is handled electronically, that it would be a good idea to ask your mortgage holder to prove that they held the mortgage, under some specific US Code.
I attempted 6 times to get them to provide me copies of our mortgage paperwork. They either sent a letter saying they "could not be located, at this time" or just didn't respond. As of last week, we still owed them $360K over 20 years, for the remainder of the mortgage, that originated at about $168K. This past weekend, we successfully completed our mortgage refinance through another lender, that is US Based, and we won't pay the new lender $300k over 30 years, It actually looks like refinancing at the rate we got (Low 4's) we will save almost $94,000. HSBC was uncooperative in every aspect, and during every conversation/phone call/letter. Take my advice, do not ever finance with HSBC, or any other bank that is headquartered outside of the United States for that matter.
My parents financed their home with this horrid company. Their customer service is horrible and practically nonexistent. When we paid them off we ACTUALLY had a celebration! We were so happy that we were finished with them! Ten years later they are STILL a pain in our side. We found out they didn't file paperwork stating the mortgage was paid in full.
I paid off my second mortgage and they will not give me a statement telling me I have paid it off. As soon as I get that I can refinance with the VA. They just won't do it so I can't get rid of my mortgage with them. They are so totally ripping every customer off.
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