Consumer complaint received 2018-04-14
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: NC
Product: Debt collection
Sub-product: Mortgage debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Seized or attempted to seize your property

Complaint:
In XX/XX/XXXX, I took out a line of equity based on the value of my home in the amount of {$120000.00}. At the time I was employed and in good health and the underwriting was commensurate with me getting the loan.

This was a 15 year loan that had a maturity date ofXX/XX/XXXX. My income began to curtail in XX/XX/XXXX with complications with my XXXX. I am a Veteran, but these injuries were not service related. So I incurred significant medical costs. However, I maintained my loan. My health worsened, with XXXX  issues that lead to me having a XXXX XXXX, then later, I was diagnosed with XXXX   and went through XXXX XXXX for XXXX. None of these conditions could be treated by the Veterans Administration Hospital, and I had to incur the expense, and I had no support system at the time, so I also curtailed my hours at work significantly to recover.

My last payment accepted by the servicer was about XX/XX/XXXX. I did not file bankruptcy, or do anything else to accelerate the lien, and I maintained communication with the servicer. I was never offered any loss mitigation options such as a modification of the loan or forbearance plan, and they were fully aware of my condition.

InXX/XX/XXXX, the servicer USAA sent a XXXX   to the IRS and myself for {$97000.00}. This inherently generated taxable income for me. They did not show any attempt to try to recover money or act on the lien and seize my property through foreclosure. However, communication stopped, and I had no idea that they were still retaining the lien on my property with the intent to seize it years later. Now, after my property has appreciated significantly, they have decided to foreclose on the lien which will net them nearly twice what I owe them, and it will give me no opportunity to satisfy the debt or save my home.

I am currently doing part time work as a XXXX XXXX and receiving an annuity. My credit score exceeds 620, and I am eligible for a VA Home Loan Guarantee that would allow me to repurchase the loan with no money down, and make USAA the primary lien holder and not a Substitute Trustee trying to seize my property illegally. If their intent was to satisfy the debt, I had and still have that ability for the amount that I owe. But their act in bad faith, was to acquire the property after generating over {$80000.00} in revenue from payments, and still get a property likely worth than more than twice the value of the loan itself based on its location and market conditions.

The lien is nearly at term and older than 12 years, and should have been extinguished when they decided to cancel the debt, and not work out loss mitigation with me.

This is no longer a demand for payment, as they cancelled the debt inXX/XX/XXXX reported it as cancelled revenue to the IRS, and waived rights to collect it therefore making it taxable income to me. Therefore, their demand for payment in the North Carolina Foreclosure procedure was done in bad faith, and therefore, this lien should be removed as punishment giving them no right to foreclose.

This foreclosure filing is a direct threat, and the casualty will be me losing equity in my home and becoming homeless. USAA should not be allowed to retain this lien and be allowed the profitable revenue that will be associated when they either sale or acquire my property. The fear of losing my home has triggered incredibly serious medical issues that I have already, and it is causing me even more suffering.

Even the attorneys in this case, had filed a motion to withdraw as counsel, because they see the inconsistencies, possible fraud, and bad ethical practices used by USAA in this matter. The servicer knows how much they are owed, knows how much they waived, and knows how much they stand to gain from the property seizure. Please do not allow me to go unprotected and abused by this company for monetary gain for an entity that is already striving. It will normalize a culture of this practice and harm many people in its wake.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation