but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]
Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.
If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.
In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.
While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.
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USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.
Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.
