Arizonans who suffered during the housing crash that began in 2008 may be getting some good news after a recent national settlement. Under a deal with mortgage firm HSBC, Arizonans whose residential mortgages were serviced by HSBC and who lost their homes due to unpaid balances may be eligible for direct compensation payments.
The settlement with HSBC will allow at least 3,335 Arizonans access to payments to compensate them for the company’s negligent loan operations and bad foreclosures. The national settlement includes a $470 million agreement which covers numerous states. Thousands of complaints were issued against HSBC following the real estate crash and the company’s mortgage negotiations. The settlement stems from abusive practices exhibited by HSBC in servicing homeowners’ mortgages, and requires HSBC to rectify some of their previous behavior by issuing loan modifications and direct payments to borrowers it dealt with during the previous real estate crash.