Neighbors Seek Help with Persistent Eyesore

It has almost been one year to the day that we reported on the plight of neighbors who abut or are located on the relatively quiet and well-manicured dead-end street of Apataki Court. Like many on the island, they have to deal with pesky Iguanas or the occasional Osprey sitting on their docks and pulling apart their recent fish catch.

Unfortunately, the largest pest they have to deal with is the foreclosed property in their neighborhood at 1870 Apataki Court. Neighbors have reached out to us for a follow up on the eyesore they are still enduring.

The public records search of court documents shows that the property was foreclosed in May of 2018 by HSBC Bank USA, which is a Global Financial Institution. HSBC would act as Trustee for Sequoia Mortgage Trust 2004-10 Mortgage Pass Thru Certificates. HSBC Bank is listed on the London, Hong Kong, New York and Bermuda Stock Exchanges. Here in the United States, its head office is in New York City and its nominal head office is in McLean, Virginia.

HSBC has listed Ocwen Loan Servicing in West Palm Beach as the serving agency for that defunct loan. However, liens may still be attached to those shown as the parties foreclosed upon.

The city of Marco Island has now accumulated $1,126,818 in fines, administrative costs and interest against the property. The violations have been remedied as of March 20th, 2023 and so while the fines have not been added to, they have still not been paid. City Attorney Alan Gabriel has reported to council on numerous occasions on his office’s progress and efforts to bring a number of properties into compliance, however that progress is slow due to the protections that insulate those financial institutions.

The property’s roof covering is in disrepair and the electrical meter has been pulled. It appears the pool is covered and secured but the home remains an eyesore to neighbors and passers-by. 

On this particular property, Gabriel has made several attempts to come to a resolution to the outstanding debt, but the representatives of HSBC appear intransigent in their responsibilities regarding the attempts to mitigate a fair resolution to the matter.

Those neighbors within that Apataki neighborhood have reported that contractors may have done some work within that home removing walls, however no evidence of building permits is evident on the property as required by law. Some notices of violations still appear white others show evidence of weather-related deterioration.

Unfortunately banks have no incentive to dispose of foreclosed upon properties. It is unclear why HSBC would have missed the significant uptick in values here in Southwest Florida that was seen as a “feeding frenzy” amongst investors, coupled with the incentive of low interest rates for potential purchasers.

In the Fall of 2022 Fitch Ratings revised the Outlook on HSBC Bank to Stable, versus its previous rating as Negative. The City Attorney continues to update council on this and other issues on a monthly basis.