VA Loan Reader Question: What Happened to VA Vendee Financing?

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Mortgage and Lending with VALoans.com - Mortgage Banker - RE Agent Trusted Lender

A reader recently asked, “Any word on when the VA Vendee Loan program will return?”

When homes purchased with a VA guaranteed mortgage loans go into foreclosure, the Department of Veterans Affairs ends up owning these properties and later putting them up for sale to offset the costs of the loan default and foreclosure.

When these properties go back up for sale, they are offered with an option to apply for a VA financed loan, available to any qualified borrower–not just veterans. This program is known as Vendee Financing.

But services under the VA Vendee Financing program have been interrupted, as indicated on the VA official site. Why?

“VA has awarded the property management services contract to market these properties for sale to Vendor Resource Management (VRM). Although, we anticipate little impact on the customer, there will be necessary changes implemented that may cause some temporary service adjustments during the transition from VA’s former property management contractor, Bank of America (BAC) to the VRM.”

The Department of Veterans Affairs has stated that, in order to “assure a smooth transition” of the Vendee financing program, the VA has “temporarily suspend pre-qualification approvals and Vendee listings.”

The VA official site adds, “Until further notice, VA’s current contractor, BAC, will continue to list VA-Acquired Properties for sale at http://va.equator.com and through local Multi Listing Systems (MLS) by local listing agents. You may also locate properties on Government websites at http://www.homesales.gov and http://www.govsales.gov. If you are interested in buying a VA-acquired property, please contact a local real estate broker of your choice. Please refer to this website periodically for updated notifications.”

This is the current state of the VA Vendee Financing program at the time of this writing, but as indicated in the quotes above, the situation is subject to change. Please refer to the VA official Property Management page for the most current updates, or call 1-800-827-1000.

Do you have questions about the VA home loan process? Ask us in the comments section.

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Topic:
Mortgage / Finance
Location:
Texas
Groups:
Military Relocations
ActiveRain Network Referral Base
Military
Active Rain Newbies
All About Mortgages/Mortgage Networking
Tags:
va mortgage loan
va reo
va repo
va foreclosure
va home loan
va vendee financing
va loan

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Ambassador
625,691
Doug Rogers
Your Pineville Louisiana Agent
Bayou Properties Realty

My client did a VA Vendee Loan through Bank of America last Summer. It took a couple of calls to his State Representatives to get the mess fixed. Was the worst lender experience I have ever seen...

July 06, 2012 07:18 AM
Anonymous #2
Anonymous
Sam

I managed to complete 2 closings on vendee financed investments and I can say that I sorely miss this product.  My wife and I were able to buy investment properties with relatively little money down (5%!!) and are cash flowing very nicely on both properties.

Dealing with the people in the Vendee Department at B of A was not the most pleasant experience, but I'd take a little annoyance and exasperation any day to get a chance at more of these homes.

I guess it all depends on your perspective.

October 20, 2012 02:32 PM
Anonymous #3
Anonymous
joe

Now that VRM has the Va management, does anyone know when vendee financing will be available?

 

joe

October 26, 2012 09:29 AM
Anonymous #4
Anonymous
Mike

Hello, I would also like to know when this program will restart, VRM is not handling these mortgages. I have my eye on a home and would like to get the ball rolling. Thanks in advance..

Mike

November 23, 2012 07:09 PM
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Rainmaker
408,566

Bruce Reichstein

VA Home Loan Expert +26 yrs - www.VALoans.com
Expert on Veteran (VA) Home Loans
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