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.