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 FL Real Estate

Niceville Short Sales & Pre Foreclosure Help.

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Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

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Call Wendy Rulnick, Destin real estate agent,to list and sell your home or condo or help you buy a home or rental property on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.  

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