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Being military we move around a lot.  As a part of that, we had a home that would not sell it sat on the market and just would not move.  We finally after years of trying had to let it go Dead in Lu.  We recently got orders to PCS and I had contacted USAA to see if buying a house was possible or not.   They looked at everything and told me that I was pre-approved for x amount of dollars.   I made sure to ask many times about if the Dead in Lu was going to come back and bite us.  They keep telling me that we were good and that everything looked fine.   A guy in my office told me you may want to get a second opinion and see if you can get a lower rate.  At this point, I had been working with USAA on this loan for about two months, paid for a trip to go look at houses and had a real-estate agent that had spent countless hours helping us out.  The other bank took about four days to tell us that the Dead in Lu was too recent and that we would have to wait a few months before we could get approved.  I told them that I had an approval from USAA and why was it different.   They told me it was because USAA understands service members a little better than other institutes.  I got off the phone with them and once again called USAA to check and make sure everything was good and again I was told everything was fine. 

Fast forward a week or two and we found a house that we loved and put an offer on it.  The birds sang and the heavens parted and our offer was accepted.  Right away I called USAA and said we have a house that we are buying and we want to make sure all it good.  Again we were told that everything was fine and the financing had to go to underwriting but it would be ok.   I had to get the house inspected which cost about 450 out of my pocket but again it was a house I loved so I really did not mind since the loan was good to go.  We had to do a few more things like line up insurance and do all these different things to get the house moving and then all went silent on the western front.  Two days and I could not reach my underwriter.  They would not respond to emails and would not return my phone calls.   Last night I get a phone call from the bank she was all chipper and happy telling me that she had been out of town and that is why she was not returning my calls.  In the same chipper tone, she told me well a few things have changed you will either have to bring the dead in lu current 17k or place 34k down at signing.  I was doing a VA loan so I did not have to put any cash down mainly because I do not have 17k just floating around that I would be willing to throw away at home that is owned by somebody else.  USAA is telling me that it is the VA that is not willing to back us until we have had two years clean from the Dead in Lu, which I get and understand, however,   There was never a point in this process where I did not clearly and openly talk about our credit issues and concerns about getting this loan.  Now we are about two weeks out of moving with no place to live and no real backup plan because we were told over and over again that everything was ok and the loan was good.  Even earlier that day I talked to someone other than my underwritten and she told me that they only needed a few things from people that dealt with the house and that on my side of the loan was good. 

If you want to know for sure if that everything is ok there are banks out there that will underwrite you before you have an offer to make sure that you do not spend the thousands of dollars I spent finding a home that you love only to find out in the eleventh hour it is not going to work.  Not only that but as I was trying to get help and get this figured out last night the underwriter keep putting me on hold and left me talking to myself.  I did not catch it the first time but the second time the phone went dead I stopped talking and was on hold for almost two minutes and she came back on acting like she was listening to me the whole time.  The third time it happened I called her out on it and she told me that she was just trying to talk to her supervisor to find out more.  Customer service 101 if you are going to put someone on hold to speak to your supervisor you inform the person that you are speaking to that you are going to put them on hold.   Long and tall of it USAA could have easily told me from the get-go that until the VA came back it was not solid, they could have let me know when I asked about doing the home inspection that it was not fully funded yet.  There is so much that could have been done right along the way that wasn't.  I am out 450 for the home inspection and the cost of my personal travel to go to look at a house about a thousand dollars in gas, hotels, food and plane tickets.  All of this could have been easily avoided if someone along the way would have said well this could be an issue if it is too recent.   They were hiding behind the Truth in Lending Act using it as a shield saying that they have to accept all credit and try for everyone.  I get it but again if the giant elephant is in the room and the person trying to buy the house has jumped up and down pointing at the elephant saying is that ok and you never say it may not be then the fault lies with the lender.   Not impressed in the least bit with USAA at this point a non-military minded bank helped me out more than one that is supposed to be all about the military.  Not only that but the other bank's underwriters supervisor that I spoke to was ex-military and understood our struggle.  My little underwriter at USAA did not even have a clue that military branches had core values and that not being honest with people was against said core values.   Now again we are in limbo waiting to see if they can if they can find a magic genie that is willing to grant our wish.   They are giving it a  second look and according to the underwriter, she has seen them work things out in the past.  

4 REPLIES

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SpecialK75, your post is concerning to read and I can understand the disappointment you feel. The last thing we want is for our members to feel let down especially in a situation like this. Your concerns are important to us and we will send your post to the appropriate team for further review. A follow up will be made with you regarding this matter. Thank you for sharing your experience with us. - Rhonda

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Now more drama.   I got a message today that there were documents needed for my loan.   I have been trying to reach out to my loan processor today but I have not been able to reach out to them.   Is there any way to get a hold of an actual person to ask questions instead of just waiting for someone to maybe call you?  

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I'm sorry to hear of the frustration this has created for you. It's certainly not our intention. I've sent a request to a colleague to look into this for you, SpecialK75. - Cathleen

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Wow I really feel ur pain