Why does a British Bank do a better job than the American Banks? (Is HSBC British?)

We have always liked short sales with HSBC. They respond promptly and are easy to work with. The bottom line is that they do a solid, competent job handling short sales.

I think the reason is because they never got a bailout from Uncle Sam. If they are incompetent and lose money, then they, and their stockholders, take the loss.

Menawhile, the large American Banks are awful to work with. I have countless stories of real estate agents working on a large national bank’s short sales for 6-9 months with no answer, documents transmitted ,and lost, multiple times, etc., etc. Want an answer to an e-mail? Be prepared to wait 1-2 weeks for that. Leave a voice mail? Don't ever expect a call back! The people at the TBTF banks are undertrained, overworked and disorganized. In my opinion, the reason these TBTF (too big to fail) don't care is because they don't own the loans, and, if they do lose money, uncle Sam will be there to be the backstop.

I remember hearing that Bank of America only owns 20% of the loans they handle, they are just the servicer for the rest. And there is a good chance that a big slice of the 20% are probably guaranteed by the government (taxpayers).

Contrast this with HSBC. They own most of their loans. That means they are the ones that stand to lose money. I couldn't find HSBC ever getting a bailout on the bailout search page. They have to have a well run bank.

Based upon our experiences, their short sales are handled properly and professionally. Here is why. They are acting as a principal. If they do a lousy job, then they lose the money themselves.

On 80% of Bank of America's loans, someone else is losing the money. That is why there is no sense of urgency at Bank of America. It's like monopoly money. It just makes sense that people do a better job if their own money is on the line. The big banks are handling other people's money. There is no accountability.

At HSBC, if the short sale department does a lousy job, then it affects HSBC's quarterly statement. If things go bad, then people are held accountable. In my opinion, there is nothing of the sort happening at American Banks such as Bank of America or JP Morgan Chase, Wells Fargo, etc.

Thinking about a short sale? We have lots of experience with all of the lenders out there. We can help you short sale your property, at NO COST TO YOU, and allow you to get back on your feet. Send me an e-mail at ShortSaleInfo@thejacksonteam.com. Or, if you prefer, you can call me at (561) 602-1258.

When we meet, I will explain how the process works in detail and answer any questions you may have.
Steve and Jackie, The Jackson Realty Group Inc.. Lake Worth, Boynton Beach Short Sales Realtors

Phone: (561) 602-1258. ShortSaleInfo@thejacksonteam.com.

Personalized...Not Franchised


Steven Jackson specializes in short sales in Palm Beach County, Florida.