I have a file with a USAA heloc. The homeowner is in foreclosure because she is way behind on her first lien, however she never stopped making payments on the USAA heloc because the payment is only $50 - The seller has agreed to sign a promissary note for the full balance, and additionally the first lien is willing to contribute $3k to usaa. USAA countered me and is saying they won't release the lien unless they get $15,000 at close of escrow and she signs a promissary note for the full balance of $30k.

I have never worked a usaa file before and have no contacts. Does anyone have any contacts over there at USAA?

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I can tell you from multiple experiences with USAA this is standard operating procedure for them. 15K is a little high but they are super tough to deal with. It is surprising since they are supposed to be for the troops and all and their members are all military affiliated in some way. But I guess they only care about those members that are not in dire financial circumstances.

Ive been fighting with USAA for over a year now.. Only now, thanks to the state of California and the SB458 law, my cleints cant give them a promissory note, or cash at close even though the want to... Any ideas? According to SB458 USAA is claiming that they can not take money from anyone other than the first lien holder... But the first lien holder BofA is only willing to give 6% of the total debt owed which is $48,500.00... USAA is demanding 50% of the debt cash at close or they wont approve the short!!! SO frustrating... ANyone have any contacts at USAA that could help me push ths thrugh? The first lien holder is ready to get me an approval letter if I can get USAA to cooperate...

Hello Jay,
I ran into this with an HOA re-conveyance transfer fee of $1800 that BAC nor the buyer would pay for. I emailed the negotiator and asked if the seller or realtors could pay for the fee knowing about the new LAW in Ca. SB458. I knew that the bank would interoperate that the bank cannot request any payment from 3rd parties.

In another email I then said under the law it allows for voluntary payment by Realtors or seller. Then the bank came back and said that the seller did not volunteer but he said that the realtors or buyer can pay. I think he said that because he was hearing from me and not the sellers. If the seller wanted to pay they would have to write a letter stating that they were volunteering to pay, (my notation).
The banks have to be very careful what they say so that it does not imply that they requested the money from the sellers or other parties. Make sure your escrow agent knows if the buyer is paying any money or promisary note so they can disclose it properly. In my case the seller is not contirbuting.
Here is a link this issue from a lawyer in Ca.
This will give you some ideas.
As it turned out, I pushed back to the bank to reconsider making an acceptation to the denial of that payment. He came back saying that the bank would contribute $500 toward the Transfer fee. We were still within the NET of the approval letter. I renegotiated with the buyer's agent to have the buyer pay part of it and the rest from myself. (The buyer’s agent had a 45% referral fee he had to pay out so he DID NOT WANT TO PAY IT). The sellers were broke and I wanted this deal to go now as BAC stated that they were not servicing the loan anymore after Nov 30th and could not promise that the new servicer would accept the short sale. We were under the gun and  in escrow ready to close on the 30th!

Good luck,
Kathy Dyer

How are they going to collect $15,000 AND the full debt?  I have negotiated these current ones to release their lien for a flat fee..usually about $5,000 and the Borrower agrees to continue making payments on their note after the Short Sale closes.

Good grief!  Good luck with this one..boneheads! 

I'm a short-seller that is about to enter negotiations with USAA on my HELOC (2nd lien).  I'm in the same boat as Joshua's client.  I owe them close to $30,000 and I'm current on my payments which run about $58 per month.  The first lien is a Fannie Mae mortgage, so they will not contribute more than $1,800 (6%) to USAA.

I've read many posts both here and at other forums about how difficult they can be and the ridiculous demands they have made, so I'm prepared for the worst.  However, I have not seen many follow ups on what the final outcome was.  For those who have dealt with USAA in the past, what can I ultimately expect if I refuse to bow to their demands?  I'm willing to work with them within reason to close the sale, but I will not be held hostage.  The only asset we own of any value is our 401Ks and we are already in our late 40s.  I will repay every dime in the form of a promissory note with a small cash contribution up front, but I will not cash out our 401Ks and mortgage our future just to appease USSA. 

Thanks in advance,




I got this deal done. Call me if you need any help. 623-252-3234. They were real bitches(excuse the language) - but we got it done.



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