Hi All... I need some help with USAA... I am helping a client try to short sale their house in California due to a Divorce... They need to sell the house, and BofA is the first( original Purchase Money from 2005) and USAA is the 2nd(refininced in 2007 to pay off an original purchase money 2nd from 2005). BofA is just about on board... They have already demanded my clients pay them an additional cash at close of $2500.00.. Im awaiting the letter of approval from them now....

USAA told me this moring that they will not accept a short sale of the 55k debt on the HELOC... They told me that they will release the lien so that my clients can sell the house and cooperate with BofA's Short sale, but that the 55k debt will be moved from a secured loan to an unsecured loan and they will purse a deficiency judgment for the full amount if my clients stop paying on the loan.... Have any of you recently had any success in getting USAA to reduce the amount of the debt for a HELOC with USAA???? I would like to get them to reduce it down to a 0%interest unsecured loan of 20% of the balance due or less.... Do any of you have any suggestions or history with this kind of situation with USAA??