California Real Estate Fraud Report

You have just entered the #1 private-sector resource on the Internet for real estate fraud. In doing so, you have voluntarily left the dimension of the conventional real estate world and crossed over to the Dark Side, the realm where greed, dishonesty and evil are the order of the day. Sign up for a free subscription to this comprehensive news resource and receive weekly, timely news reports about real estate fraud, mortgage fraud, short sale fraud, REO fraud, title fraud, loan fraud, appraisal fraud, affinity fraud, loan modification scams, securities fraud and elder financial fraud. *** AS OF NOVEMBER 2017, THE CALIFORNIA REAL ESTATE FRAUD REPORT IS 10 YEARS OLD! ***


New York Attorney General Sues HSBC for Stalling Foreclosures

New York Atorney General Eric Schneiderman has sued HSBC Bank USA and HSBC Mortgage Corp., accusing it of dragging out foreclosure cases in violation of state law in order to make it more difficult for homeowners to avoid foreclosure. 

Banks use stalling tactics as a strategy in order to stack up more penalties, fees and interest against homeowners. That said, Schneiderman is looking at suing other lenders for using the same tactics.

According to Schneiderman, “Companies like HSBC are brazenly ignoring state law, leaving homeowners across New York stuck in a legal limbo where they can’t even get the legally required settlement conference that could help them keep their homes. For homeowners facing foreclosure, time is their greatest enemy. Every day spent waiting for a settlement conference is a day that the lender piles on additional interest, fees and penalties and the homeowner falls further behind.” Read his statement on the New York Attorney General’s website.

Unlike California, which is not a judicial foreclosure state, in New York, the lender is required to file a request for judicial intervention once it files suit against the borrower. That triggers a requirement to hold a settlement conference to explore alternatives to foreclosure, including mortgage modification, within 60 days, which Schneiderman is saying HSBC and other lenders are intentionally avoiding.

An example of this tactic, Schneiderman outlined the case of Rebecca Karm of Erie County. Karm, who suffered both a medical illness and the loss of her job, fell behind on her payments. Although HSBC filed the proof of service on November 12, 2010, it didn’t file the request for the conference until June 8, 2012. According to an affirmation filed by the Western New York Law Center, during those 547 days, Karm’s principal balance ballooned by $23,000 because of fees and penalties HSBC piled on her.

Read the original article in MSN Real Estate.

© Copyright 2007-2018 Monique Bryher

Legal Disclaimer.

The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

ALL RIGHTS RESERVED. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author, except for the inclusion of BRIEF QUOTATIONS in a review.


Copy Protected by Chetan's WP-Copyprotect.