HSBC Bank Halts Foreclosures
Posted By Chris Forrest on Mar 1, 2011 2:11pm PST
HSBC Bank USA and HSBC Finance Corp. have stopped all home foreclosures until further notice and may face regulatory fines for deficiencies in their servicing and foreclosures procedures. In a government filing by HSBC on Monday, Feb. 28, 2011, HSBC acknowledged that it was imposing a moratorium on all foreclosures until it has corrected the deficiencies it its foreclosure procedures.
HSBC's foreclosure moratorium is allegedly related in part to its use of "robo-signing" procedures which resulted in the improper filing of legally insufficient affidavits in foreclosure lawsuits. Robosigning refers to bank or law firm employees signing off on foreclosure affidavits without actually having any personal knowledge of the cases or verifying the information contained in the affidavits they signed.
The Forrest Law Firm is closely monitoring HSBC's self-imposed moratorium. Presently, we have no indication when HSBC foreclosures will resume.