Attorney General Schneiderman Steps in on the Side of Justice

The New York Attorney General has sued HSBC Bank and HSBC Mortgage Corp. for failure to comply with New York foreclosure rules, laws, and regulations.  HSBC has been filing foreclosure actions against homeowners throughout New York State, and then sitting on many of them for months or even years without any activity. During this delay, interest, fees, and costs accrue on the mortgage account.  When HSBC finally gets around to filing the mandatory paperwork to move the foreclosure forward, they demand higher payments from the homeowner.  In New York State, a bank is required to file a Request for Judicial Intervention simultaneously with the proof of service of the summons and complaint to trigger the Court’s process of holding settlement conferences.  Any delay in starting these conferences is detrimental to the homeowner as it delays timely settlement discussions and delays the homeowner’s connection to free legal services that are provided at the Court’s settlement conferences.

This lawsuit is welcome news for homeowner advocates as it will help homeowners harmed by HSBC’s violation of the law and it will reinforce the Court’s ability to settle more foreclosure actions with loan modifications that keep homeowners in their homes.

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