I have an "approved" short sale with BOA (first lienholder) for my seller
2nd lienholder - I also have a negotiated approval
3rd lienholder (USAA $144,000 balance-seller current) ) USAA refuses to play ball
The seller offered to pay USAA the entire balance owed of 144,000 by giving them $6500 at closing and paying the remaining 137500 in monthly payments at an interest rate that USAA suggested initially until paid off. USAA said NO to this offer  Instead USAA countered with demanding $70,000 cash from seller at closing to release lien then remaining $74,000 deficiency balance must be paid off by unsecured note in monthly installments at agreed upon interest rate. They know seller has a retirement fund and they understand that he would incur all kinds of fees and penalties to cash out his retirement in order to pay them but....
USAA are stalling long enough for our approval to expire--and our very good buyers to walk...they want the seller to go to foreclosure. What will they gain then? The seller vows to sue them if he is forced to forclosure because he was initially approved through HAFA  but USAA killed that deal too...which forced us to go conventional short sale .. this is clearly not a strategic default
Is there no sense to how these idiots think ?
Any suggestions?
FYI-anyone else get the pleasure of dealing with Judith Madeira as negotiator for USAA?????