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This Credit Union Is Disgusting - Share This Video

By
Real Estate Agent with Group 4610 Network

We have a client who is in the Navy, stationed in Arizona. She has recently received relocation paperwork to be transferred back to Virginia. This borrower applied for a short sale because when she bought her home it was worth more than it is now. So, she is looking for her financial institution, Navy Federal Credit Union - the nation's largest credit union, to assist her with her short sale.

We know that all short sales are an uphill battle. However, the response we received from Navy Federal Credit Union caught us off guard. Navy Federal Credit Union is requiring our client to pay a promissory note of $125,000 AFTER the proceeds from the sale. If she doesn't agree to those stipulations, her checking account will be closed and she will no longer have access to any of her accounts. Also, any other items will be frozen and closed.

This is simply disgusting. Current active members of the military shouldn't be putting their money in a bank like Navy Federal.

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Show All Comments
Shannon Coe
exp realty of California, Inc. - Oceanside, CA
760-586-5268, San Diego Realtor
unbelievable. I can not believe the Navy Federal Union is acting like this. I will share this and hope that we can get back in a position to help people not banks!
Mar 23, 2011 04:59 AM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

I would like to say I can't believe it but I can.  I think banks are starting to lose their minds again.

 

Mar 23, 2011 04:21 PM
Ron Tarvin
Residential, Investment properties, rehab projects, property management, luxury homes, new construction! - Katy, TX
Broker, Katy, Houston, Cypress 77450,77494,77095
Guys, I watch your stuff a lot but this is a little suprising. I understand it's an extreme case, with the seller $125,000 upside down and the demands on keeping their money etc but seriously, it's NOT the banks job to "help" out. I'm not willing to excuse unethical practices such as NFCU seems to be doing but on the short sale/mortgage front, I'm not sure they have the obligation to eat $125K. What is owed on the house vs what will it appraise/BPO for? Was this solely because of rapid,massive decline in the housing market or was this due to not keeping up with the property, ARM adjustment, delinquent on payments causing add on fees (which can be removed)? Another thing for this seller to consider is that if the NFCU decides to report this to her commanding officer, she can say GOODBYE to any type of security clearance she might need for her job as well as the NAVY can actually boot her out of the service for failure to manage her financial obligations...I've seen it happen. This situation is much more than just a short sale....
Mar 24, 2011 04:25 AM
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

Ron, I think this is exactly what the short sale is intended for.  Obviously she has a hardship in that she is PCS due to the Navy and her hardship can get worse if Navy Federal does what they are threatening to do because she will indeed lose her security clearance.  Of course we don't know all of the details but seems pretty likely that the market has dropped that much in Arizona.   I know Group4610 very well and I know that they wouldn't be fighting if there was not something to fight about with Navy Federal.  Actually, Navy Federal is famous for this kind of treatment to its members who need their help.  They loaned the money and took the risk so they are indeed obligated because if the homeowner can not continue to make the payments due to a hardship, then Navy Federal will own another home and that can not be good for anyone.

She needs to cancel her accounts there right now, leave one open with the mandatory $5.00 in it.  Shame on Navy Federal for treating our nations military the way they do.

Go get em boys!

Mar 24, 2011 07:08 AM
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