Competing for a top spot in my yearly Top 10 Worst Short Sale Lender Awards-- USAA will surely make the list for 2009. Here are the details that should bring pause for all those attempting a USAA short sale.
Seller: retired widow, almost 80 years old
Seller's income: $1,100 per month
Seller's Assets: about $6,000 CD, $5,000 savings, $90,000 IRA (which contributes to her income)
Hardship: Husband died of cancer last year, reducing retirement income, need to sell townhome because they had to move to a one-story home because they were unable to climb stairs
First Mortgage: GMAC - owed $250,000
Second & Third Mortgage: USAA - owed $150,000
Property Value: $200,000
The USAA negotiator told me at a minimum, they would want $6,000. The negotiator told me if I had the HUD redone, she would take it to "management", but warned they had a "new" attitude about short sales. So, per instructions, I had the settlement statement changed, and asked GMAC to pay $6,000 instead of $3,000.
Three days later, today, the USAA negotiator calls me back. She says the short sale will be "denied" if my seller does not pay $44,000, no less. She states, if the seller does not accept the terms, they will allow the property to be foreclosed on, because "Frankly, she owes us a lot of money". If not, she said, they will pursue the monies with full force of the law, and although they "cannot discriminate because of age", will go after this elderly woman's "estate" in probate court. (Wink wink)
This is one of the cruelest comments and attitudes I have heard from any short sale lender. Would the comment about pursuing this widow's estate have been made if she had been in her 40's? I doubt it. But it was repeated to me multiple times in the conversation, that "USAA could not discriminate because of age, but.... " I can only imagine what was discussed at the management meeting to decide my seller's fate.
So let this be a warning to any homeowner or agent working with USAA. They are not nice, they don't care, and they will wait until you die if necessary, to collect their money.
UPDATE TO STORY: USAA has agreed to a much lower payoff from the homeowner, who is delighted, and said her "prayers have been answered". USAA also indicated to me that they really do care about their members. It is refreshing and enlightening that some corporations, such as USAA, will review decisions and assess the real, human impact when they can.
It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Niceville Short Sales & Pre Foreclosure Help.
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Wow, That is Unbelievable
Jane - I could not believe my ears. Still in shock.
Do you honestly believe that noone should pay their obligations anymore?
Ross - No, but to insinuate that the seller would be dying soon, so they could collect is unconscionable.
Wendy,
Send them the deed! Let them pay GMAC $250,000!
Bill
That is beyond harsh, I'm working on a hardship case with a widow right now, If I ever got a whiff of something like this I would be calling the banking commission in my state. You may not be able to help this seller but if the lender can't make loans in your state any more so much the better
At the very least I would speak with the banker's superior. He should not be representing the bank.
Oh My God! That takes customer service cruelty to a whole new level.
I love the "USAA could not discriminate because of age, but.... " isn't that what they are doing? Of course maybe they don't see that, since they obviously have blinders on to give them the tunnel vision they work with when making decisions. Do they not understand that if the property gets foreclosed upon, they will most likely receive ZERO, as they are not the 1st lender? Unless of course they are the ones to foreclose and then will have to settle up with the 1st...who will want all!
I will certainly be on the lookout for this lender in the areas we have offices and inform our agents of this company's lack of professionalism and property etiquette! Thanks for sharing this with us.
I already have a bad USAA taste in my mouth and this just reinforces it. Who among us has had a buyer call USAA from their office only to have USAA solicit them with their mover's advantage??? And the last time was even when the buyer had already signed a buyer rep agreement. I already counsel my bueyrs not to use USAA..."great at auto insurance and credit cards, but when it comes to mortgages some of our local lenders can do better." I show them a HUD1 for USAA and another local lender and now, thank you very much, I will use this posting as added ammo against them.
More than once...I have wished that the recorder was running while some of these less than professional LM's spout their expertise...this sounds like one your state banking board would like to give a listen to..hmmm ?
Holy crap! This is awful! My heart goes out to that poor seller....and as for USAA, I'm fervently praying that there is such a thing as hell so that they can get crispy-fried into eternity.
Disgusting.
Bil - I think seller is going to figure something out.
Steve - I am sure they are within legal rights, but for crude factor, you are right. Morbid.
Montana - I was thinking about that.
Cris - I believe as a junior lien, they can pursue their deficiency in Florida for years. I have had other issues with USAA in the mortgage lending arena, too.
Richard - I share your sentiment.
Sally & David - I think they have those rights. It's abhorrent to threaten the estate of an elderly person, though.
Colleen - I had to maintain my composure on the phone. The seller wants the short sale done.... I know.
This is totally unbelievable. I feel so sorry for the seller, and so ashamed of the USAA.
I just read Midori Miller's post, Missy Caulk This One Is For You-We Is Better Than Me!...this is about writing to the White House. I suggest you forward this post...to let them know what is going on...totally unacceptable,
Rebecca - Thanks for the link... The situation sets a new standard, doesn't it?
Hi Wendy, Ugh, I hate hearing stories like that. It just doesn't make any sense (but I suppose so much of what is going on today just doesn't make sense). Your seller is fortunate that she has you up to bat for her! Hang in there and fight the good fight!
Wendy, I for one can not stand USAA. They have the military believing they are looking out for them. Instead, their insurance rates are too high and their customer service stinks. I say give the deed to the first and tell USAA good luck getting your money
Sandy - Thank you for your support. I am doing whatever I can, that is for sure.
Jeff - I share your sentiments! They are "too good", not!
Yea the Collection Mentality has begun to take over companies like this .. they think that if they push hard enough money will grow out of the front yard .. I get it that want to do the highest best for the outstanding debt but lets get real.
Heee heee Eric. This company is not even close to "getting it"...
Do they give prospective employees a test to be sure they are devoid of feelings? What a shocking situation!
Laura, yes, indeed.
Wendy,
I called our local congressmen on a short sale with Countrywide to see if he could help with it. I then let the negotiator know he was going to investigate it and before I could get the necessary paperwork filled out by my client and back to the congressman's office, Countrywide's/BAC's upper management approved the sale.
Fight the Good Fight Wendy!
Gary - Thank you - good for you, too, taking action.
Ah, I see...the money USAA loaned grew on a tree in the yard at their corporate headquarters, and thus, they should eat the loss. And of course, the lady's heirs should get any monies left after she dies, even though she has a huge debt owed to others.
Whatever happened to morality? If you were in a business that got stiffed when there were assets left to go to heirs, you would feel differently.
I agree with Wendy. The insinuation that they would wait for her to die and then place a lien against her estate is abhorrent to say the least. The issue is not the money that they're getting or not getting.....that's what happens to a junior lien in a short sale issue. No one said that the Seller didn't owe the money. The fact is that semantics is everything. Can you imagine how difficult it would be for the lender to defend those statements in a court of law????
Wendy, your stories just make me shake my head! I cannot believe the callousness of some of these companies! By the way, what made them change their mind? Did you tell them you were going to expose them on AR or something?
Junior Liens when handled correctly do not need to tank a short sale transaction. Persistence is key.