Virginia HSBC Borrowers Who Lost Homes May Be Eligible for Settlement Payment

Money may be coming to thousands of Virginians who lost their homes due to foreclosure following the collapse of the housing market and the mortgage crisis.

Virginia Attorney General Mark Herring says claim forms are being sent to 3,100 HSBC borrowers in the Commonwealth who lost their homes during America’s housing crisis.

Those Virginians may be eligible for payments under the $470 million HSBC national mortgage settlement.

“This payment is intended as partial compensation for the mortgage servicers’ illegal conduct and servicing abuse, and further terms of the settlement ensure that HSBC will abide by more rigorous standards when servicing mortgages or attempting to foreclose,” Herring said in a statement Wednesday. “We will continue to work each and every day to defend the rights of Virginia consumers and to hold businesses accountable when they violate consumers’ rights.”

The United Kingdom-based financial institution agreed to a $470 million national settlement with the federal government, Virginia, 48 other states and the District of Columbia after “investigations which alleged numerous violations in its servicing of mortgages and its foreclosure practices.”

Of that $470 million settlement, $59.3 million in payments has been specifically earmarked for payments to over 75,000 borrowers across the nation who lost their homes due to foreclosure and had their loans serviced by HSBC.

According to the Attorney General’s Office, “The exact payment will depend upon the total number of borrowers who decide to participate.”

In a statement, Herring added that borrowers do not give up any legal rights by taking part in this settlement, adding “They may participate in this settlement and also pursue other legal remedies such as filing a lawsuit or participating in a class action, if they so choose.”

Those eligible should complete their claim forms and return them as soon as possible in the envelope provided, or file them online at www.national HSBCsettlement.com.

The deadline for all claims is November 15, 2016. Payment checks are expected to be mailed in February or March of 2017.