Consumer complaint received 2016-12-08
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: GA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
We were recently denied a settlement counter-offer on a HELOC lien held on our property address. Please know that if we had known about the lien, we would 've continued to pay on it for the past three years. Unfortunately, we were misinformed by a USAA employee in the Bankruptcy Department on XXXX XXXX, XXXX. The reason why I reached out to USAA was in order to continue making our monthly HELOC payments. The reason they had ceased is due to our filing a Chapter XXXX Bankruptcy earlier in the year. Once the Bankruptcy was discharged, I reached out to USAA to continue with payments. XXXX advises that since the HELOC was n't reaffirmed, voluntary payments were no longer necessary. I also advised how originally our XXXX XXXX XXXX home mortgage/USAA HELOC was to be included in our Chapter XXXX Bankruptcy, but XXXX XXXX XXXX agreed to a Loan Modification after I filed a complaint with the US Treasury. Again, he stated that we did n't have to pay anything. He also advised we 'd no longer receive paper statements nor would we have online access to statements. In XXXX XXXX, we decided to put our house on the market in order to prepare for our XXXX son 's future. We know that he 'll be living with us for the remainder of his life. We wanted to find a house with a full basement which could eventually be modified into an in-law type suite containing a bedroom, full bathroom, kitchen, as well as a washer/dryer. This is in order for us and his XXXX to work on independent living skills in order to prepare him to become a truly independent young man. Our house sold in 4 days. In preparing the closing documents, the pre-closer advises there 's a lien from USAA on the house. She has the attorney review the bankruptcy and said that the USAA 2nd mtg was discharged in the bankruptcy BUT no lien avoidance order was filed. We need either a release from USAA ( Quitclaim deed, cancellation, etc ) to record at closing or we need a Lien Avoidance from the Bankrtupcy court. We need XXXX of these to clear title and proceed to closing. On XXXX XXXX, XXXX I called USAA and after speaking with XXXX different departments, I 'm then transferred to ext. XXXX and spoke with XXXX inquiring about a lien release. She advised a lien release would occur if the balance of {$19000.00} is paid in full. I explained to her the conversation I had with the Bankruptcy Department on XXXX XXXX and she advised that she was n't involved in that conversation and did n't know what I was told. I then asked about some sort of a negotiated amount. She advised there 's a member assistance program and faxed an application. We filled out all of the documentation including a hardship letter and faxed in our request XXXX XXXX, XXXX. We receive a call from XXXX XXXX ( I 'm not certain if it 's the same XXXX who 'm I spoke with on XXXX XXXX ) stating that it seemed that we wanted to request a settlement option, not a sell short. I advised that is correct. I advised how our house is under contract and has a closing date of XXXX XXXX. She advised that USAA legally has 30 days to make a decision and as of now, our request is incomplete. She asked for a mortgage loan payoff from BAC and pay-stubs. These items were faxed on XXXX XXXX, XXXX. Our closing date is then moved to XXXX XXXX, XXXX. We also agree to pay our buyer 's rent for the month of XXXX. On XXXX XXXX, XXXX, I received an email from XXXX XXXX stating USAA rejected our settlement offer. On XXXX XXXX, XXXX, I then submitted a counteroffer and that too was rejected. I spoke with XXXX XXXX on XXXX XXXX, XXXX for further clarification. She advised that since we have sufficient equity in the house to cover the lien, all counters will be rejected. The full loan amount is expected from us in order to lift the Lien.

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