The quick summary:
House worth $440K per county assessor.
Primary loan at $570K, permanent HAMP mod.
HELOC at $125K, USAA, have stopped paying over a year ago.
USAA insured the HELOC through United Guaranty. Of course, the default triggered the insurance clause, and UG got the loan from USAA with the attached claim.
We just spoke to UG, because we haven't heard anything. What they said is that the loan was returned to USAA after being flagged for potential "income fraud".
Can someone explain this please?
When I took out the loan - by refinancing the HELOC I originally got with the house - I stated (IIRC) $125K in income. Our 2007 return shows $143K AGI. How can this be fraudulent? because I reported less income than I had at the time? what am I not getting?
My income got decimated in 2008 when my consulting business evaporated during the meltdown. I rapidly went from making pretty good money to making none at all, eventually culminating in a Ch7 filing late 2009. Is this somehow tied to that?
Any insights would be appreciated.