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VA Vendee--My experience with this loan progam Part 3 of 3 The Closing

By
Real Estate Agent with South Metro Property Management, LLC

lonely road in Henry CountyWill I ever recommend the VA Vendee program?  NO. My conclusion after this experience with the VA Vendee loan program has been that it is typical of other 1-800 or other internet-based lenders. You as an agent or as a buyer or both of you are going to have to to follow-up and follow-up some more. It's a loan program  offered through a Bank of America call center in Texas. You will not get the same service as you will from a reputable local lender.

You will find little information regarding this program on the internet because there are very few home buyers using this loan program. There are very few home buyers using it because it is a very difficult process. Hence, the long and lonely road. 

You can read Part 1 here. And Part 2 here about my buyer's experience buying a home in Georgia. 

Do you qualify for the VA Vendee program? Click here.

The closing was a great mystery. There were no answers from the loan originator. There were no answers from Bank of America. The loan processor for Bank of America demonstrated repeatedly that she knew very little about real estate transactions. She asked me several times if she should order title? Yes, yes, yes. Then she asked if she should arrange for closing. YES!! YES!! YES!! I gave here names and numbers galore for a closing attorney.

NOTHING.

After many many phone calls and emails we finally find out that she didn't know she was supposed to use a title company contracted by the VA for VA Vendee loans. That title company was Service Link, which is a the closing service for Fidelity National. 

How can a loan processor not know this? She kept asking me what she should do because she was getting no answers from her own company. She even told the listing agent that she couldn't let her know the status of the buyer's loan because that was private. WHAT???

Well, Service Link finally gets the package together from VA Vendee/Bank of America, sends an attorney to my buyer's workplace to have her sign the loan papers, and declares the transaction closed. (The attorney first shows up with completely wrong papers.) 

NOT. 

More than two weeks after closing my buyer and myself had to scream in emails and phone calls to get her copies of the loan papers. She was left with none. The closing coordinator thought the B of A loan processor would take care of sending them and vice versa. Finally, they sent them. 

Two months later my buyer has to jump up and down to get a copy of the warranty deed, which 2 months later was still not filed. Oh, because it wasn't signed and notarized at closing. 

This is what you get with Service Link, an attorney who at first shows up with the wrong loan docs, then doesn't make sure everything is signed properly. 

Did I mention the HUD had many mistakes? 

Beware of Service Link. Watch them like a hawk. It was later revealed that this sloppy closing was one of their firsts with the VA Vendee program and that they genuinely cared about these details. They did finally take care of the mistakes on the HUD, the copies of the loan papers, and filing the warranty deed. But, it was only through prodding. 

Perhaps there are success stories out there of "smooth as butter" transactions with VA Vendee. Perhaps now, they have worked out the kinks. 

Remember the squeaky wheel.

 

 

 

 

Comments(4)

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Paul Durry
Collateral Specialist Inc - Lawton, OK
Former Broker Associate, CDPE, CIAS, CHMS

Karen welcome to the VA Vendee world! I have found out that it is far easier for owner occupant buyers to complete a Vendee thanit is for investors. The precentage of investors is very low. One agent in my office have 5 deals going Vendee with investors, none closed.

Jan 06, 2010 09:31 AM
Karen Luke
South Metro Property Management, LLC - McDonough, GA
Henry County Real Estate

Thanks, Paul. My buyer was owner-occupant. I can't imagine the difficulty with investors. 

Jan 07, 2010 01:37 AM
Karen Luke
South Metro Property Management, LLC - McDonough, GA
Henry County Real Estate

Thanks Scott Griffin. It's been a year now since that experience with VA Vendee. I am glad to hear it's better.

As far as processors giving updates, that task should be given to the originator who should send out daily updates to all parties involved via email. That's how it is done with the best of the best mortgage brokers. They get things done because they eliminate the need for realtors, buyers, sellers and anyone else to feel that they need to call. Their phones are quiet. Bank of America should learn how to keep their phones quiet, too. 

It is a great loan program. I get calls at least twice a month from around the country (7 states so far) when people don't want to write their long sad story here. They are at their wits end with the frustration. The common issue is the closing. None of these buyers understand this closing BECAUSE they aren't told how it will work. There is no communication on this. 

If you work for Bank of America why not educate buyers on how this type of closing works? It shouldn't be kept a secret from them. 

All these complaints come from one root cause--inadequate communication on the part of Bank of America. 

The VA Vendee program is exactly how you describe it--an awesome deal. Bank of America's consistent lack of communication ruins it for many people. 

 

 

Nov 05, 2010 01:48 AM
Karen Luke
South Metro Property Management, LLC - McDonough, GA
Henry County Real Estate

Thank you Sheri and Angela. Question and double check everything as you go about this process. Sheri, about title issues--they don't know where the title is. It got lost as it the original mortgage was sold and resold on Wall Street. Watch this 6 minute video. The VA may be out looking for Linda Green.  

 

May 04, 2011 07:37 AM