USAA Home Equity Line of Credit

[tomfin2000]

Hi,

I'm looking into filing chapter 13 and surrendering my home in full satisfaction. The primary mortgage (Fannie Mae) has a balance of $285,000. I also have a $30,000 home equity line with USAA. The market value of the home is approximately $215,000.

I understand what *can* happen. Either USAA will not file an objection to the "full satisfaction" language and the debt will be discharged or they will file an objection and attempt to prove that 100% of the HELOC is unsecured (which shouldn't be too hard to do).

What I'm wondering is if anyone here has had experience with USAA in similar circumstances. Do they tend to put up a fight in Chapter 13 or do they usually allow the property to be surrendered without challenging it?

Thanks,

Tom

[RunningMan]

Do you have any other unsecured creditors you will be paying in the plan? Will you be paying them 100% of their claims or less than that? If you are going to be paying the unsecured creditors back less than 100%, it probably won't make a difference if the HELOC is unsecured it will just reduce the percentage paid back to the other unsecured creditors.

[tomfin2000]

Sorry, I forgot to mention it would be a 100% plan. My lawyer said she has only had 3 or 4 cases where a creditor filed an objection to a surrender in full satisfaction but USAA has a reputation for being bulldogs, at least with short sales.

[flower04]

We had unsecured CC with USAA that we put into our 13. They are one of the few creditors that is getting paid through our 13. We kept our USAA insurance with them until we had to move and needed a new policy. They would not issue it stating that we "owed money to the USAA bank." It didn't matter that they were getting paid through our 13, it was still showing as a debt. I really liked USAA and we used them for auto, home, and life insurance. We had to switch our insurance to a different company. I would remove any other business you have with them in case they deny you. We got lucky and they renewed our policy after we filed. We were sweating it out. Our new insurance is about 40% higher now that we used to pay with USAA. Good luck.

[ValleYum]

You will lose online access almost immediately. You will only be given limited online access through USAA mobile. LOL it takes up a corner of my computer screen the size of a cell phone & can't be maximized to easily view it. It will let you make payments to your insurance and do a few other tasks.

Thus far (~40 days after filing) they have not touched the small amount of money in my USAA checking account to set off the CC debt we BKed but your mileage may vary.

Print out or save to a thumb drive all your statements and insurance cards, policies, etc. because you likely will need them and they will be much harder to obtain once you file.

Good luck!!

[sealpup]

Are you behind at all on the HELOC? My husband was unemployed for over a year. We fell behind on our HELOC payments w/USAA (can't remember exactly how many/how much arrears were). We called them several times a month keeping them posted about our situation and trying to make payment when/where we could. One day I log on to check something w/my bank account and notice our HELOC balance says $0!! Wth I wonder. So I call them- long story short they filed a claim on the insurance (didn't even know that existed) and United Guranty now owns our loan. I felt like they did this under our noses even though we were trying our hardest to work with them. I asked them why they didn't tell us they had filed a claim and they said they don't b/c they feel once they tell people they have filed a claim then they will think they don't have to pay. This did, however, work out to our benefit. Our original interest rate was 10.25%. USAA had temporarily lowered it to 7% with us on some kind of hardship plan. Well, United Guranty could only see that it was 7%- they don't know it's really 10.25%. So in order to work with us United Guranty lowered our rate to 3%- for good! So we went from 10.25% to 3% in the process of them filing the insurance claim and United Guranty picking up the loan.
Anyway- that's just my vent/story with my HELOC w/them. If you are behind at all, they could be planning or already have filed an insurance claim. I think they filed the claim about 6-8 weeks before the loan was actually transferred to United Guranty.