HSBC is a worldwide lender that is headquartered in London, United Kingdom and is known for being the third largest bank in the world. With over 89 million customers spanning more than 85 countries, HSBC has approximately 7,200 offices across the globe.
One of the many services that HSBC provides to its customers is home loans. These home loans are often great investments for lenders like HSBC, but sometimes these investments can go bad when homeowners are unable to pay their monthly mortgage payments for an extended period of time.
When homeowners are delinquent on their mortgage payments, they enter into the HSBC foreclosure process, which can sometimes results in HSBC becoming the full owner of the property. Below is some information on how these homes become HSBC bank owned properties through the foreclosure process.
What is the HSBC Mortgage Foreclosure Process?
Although the foreclosures laws varies by state, the foreclosure process generally starts with a missed mortgage payments and either ends in the homeowner becoming up-to-date on their mortgage, the home being sold at auction, or the lender becoming the owner of the property.
When a homeowner fails to pay several monthly mortgage payments in a row (typically 3) then HSBC will issue a Notice of Default to the homeowner. This notice provides essential information such as how much money is owed and when the money must be paid to the lender. If the home loan is not up-to-date after the specified time, then HSBC will issue a Notice of Sale.
The Notice of Sale is a document outlining that the home is set to sell at auction unless the homeowner is able to pay missed mortgage payments and all associated fees. If the sale date approaches and the homeowner has not paid the amount owed, then the home is auctioned off to the public.
HSBC will have an attorney present at the public auction and will make an opening bid that is often equivalent to the amount owed on the home loan. If this bid is not exceeded by another bidder, then the property is then owned by HSBC. These repossessed properties are known as HSBC REO properties or HSBC foreclosures.
Where Do I Find HSBC Homes for Sale?
Once HSBC takes ownership of the property, they will file the information in the HSBC foreclosure department, which keeps an updated list of all foreclosure properties in the banks inventory. More often than not, lenders will work with a group of realtors to not only market but also sell the property for them. Therefore, if you are looking for HSBC homes for sale, you can contact the HSBC foreclosure department, search a US bank foreclosure list, or contact the realtor associated with the property in which you are interested in purchasing.
At the end of the day, HSBC foreclosures are the result of a homeowner being unable to pay monthly mortgage payments, resulting in the repossession of their home. Once these homes are property of HSBC, they are put back on the market as the lender attempts to sell the home to recoup as much as possible on the existing mortgage. Investors and potential homebuyers are able to take advantage of these situations and can often purchase foreclosures and HSBC bank REO homes below market value.